A Layer-1 blockchain called ZIGChain has secured a landmark Shariah certification for its Proof of Stake (PoS) consensus mechanism, a move that could bridge decentralized finance with the multi-trillion-dollar Islamic finance sector.
The certification was granted by Amanie Advisors, a leading authority in Islamic finance, and specifically validates the blockchain's underlying validator infrastructure. It addresses a long-standing doctrinal barrier by classifying the staking rewards not as forbidden interest (riba), but as profit derived from validators' genuine economic work and risk-taking, a structure known as Wakala bil Istithmar (an investment agency model).
"This resolves a key uncertainty that has kept Islamic institutions on the sidelines of blockchain staking," said Dr. Mohd Daud Bakar, Chairman of Amanie Advisors. The certification is significant because it applies to the consensus mechanism itself, setting a precedent for how PoS networks can align with Islamic investment principles. This opens the door for institutional investors governed by Shariah law, who oversee assets projected to reach $9.7 trillion by 2029, to participate in staking with confidence.
The development follows other institutional moves toward ZIGChain, including a $30 million token allocation from a publicly listed company. By providing a compliant pathway, ZIGChain aims to position itself as infrastructure for the next wave of institutional capital seeking to generate wealth on-chain within an ethical framework.