Crypto ventures such as Islamic Coin, the digital money venture backed by the Swiss-based non-profit Haqq Association, are making smart moves to reassure investors with grant and investment initiatives, besides diversifying into new segments through tie-ups, amid funds of several virtual currency firms stuck in the collapsed Silicon Valley Bank (SVB) raising fresh investor concerns on the sector.
The Shariah-compliant digital money venture will allocate $40 million for the launch of a worldwide ‘Grants and Investment’ programme for the Muslim community and beyond.
Haqq Network (HAQQ), the Shariah-compliant blockchain, has also announced an exclusive integration with Holiday Swap, the world’s largest home exchange platform that allows users to book, host or swap homes.
Of the $40 million, $20 million will be allocated in USD or USDT (an asset-backed cryptocurrency stablecoin), and another $20 million will be allocated in Islamic Coin.
Funds will be used for further development, marketing, bug bounties, and other initiatives and ventures aimed at improving the global adoption of HAQQ Blockchain and Islamic Coin.
The fund is allocated from the $200 million fresh capital recently raised by Islamic Coin from a clutch of private investors.
“The purpose of this program is to boost the growth of the Haqq ecosystem and to encourage the development of blockchain-enabling applications that adhere to Islamic values”, Andrey Kuznetsov, Co-founder of Islamic Coin, told Arabian Business.
Kuznetsov said the ecosystem fund is not just for grants, but also for investments and the corpus would be enlarged going forward.
“We are starting with $40 million. It is definitely not a one-time initiative, but it is too early to talk about how the fund will evolve in the far future,” he said.
Shariah-compliant crypto’s web3 projects
Kuznetsov said the allocation will be mainly to web3 projects such as Automated Market Makers (AMMs), curated NFT marketplaces, EduGaming, and philanthropic DAOs (ventures built on blockchain technology).
“However, the fund is not purely focused on web3. We welcome web2 businesses to integrate with the Haqq Network and utilise Islamic Coin to expand their services to the Muslim population, which has a large portion of unbanked people,” the digital money founder said.
“We are proud to be launching this, and look forward to many exciting proposals from our dedicated global community,” Kuznetsov said.
Incidentally, Islamic Coin’s new initiative on the grant and investment programme follows the recent entry of Sheikh Hazza bin Sultan bin Zayed Al Nahyan, grandson of the first president of UAE Sheikh Zayed bin Sultan Al Nahyan, as a top advisor of the company.
Arabian Business, which first broke the development last month, reported that Sheikh Hazza bin Sultan bin Zayed Al Nahyan will be helping the company to focus on its mission to empower the world’s Muslim community with new financial instruments.
Haqq Network-Holiday Swap tie-up
Under the exclusive integration with Holiday Swap, HAQQ will assist the platform in moving their loyalty token system and all related operations to web3, gaining instant exposure to Holiday Swap’s client base.
The partnership will enable users of both platforms to offer more services to clients on an ethics-powered, industry grade digital platform.
Holiday Swap was founded in 2018 by James Asquith, the official Guinness World Record setter and holder for being the youngest male to visit all 196 sovereign nations in the world.
The company, which has over one million users worldwide and operates in more than 185 countries, aims to provide sustainable and affordable solutions to travellers around the world.
The advisory board of Islamic Coin includes members of Abu Dhabi and Dubai ruling families, including Sheikh Khalifa bin Mohammed bin Khalid Al Nahyan, Sheikh Mohammad bin Khalifa bin Mohammad bin Khalid Al Nahyan and Sheikh Juma bin Maktoum Al Maktoum.
The digital money venture is co-founded by Mohammed AlKaff Al Hashmi, Hussein Mohammed Al Meeza, Andrey Kuznetsov and Alex Malkov.
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