XRP's Shariah Certification Opens $2T Islamic Market Access

The Central Bank of Bahrain’s Shariyah Review Bureau (SRB) has declared XRP, the native token of Ripple’s XRP Ledger, compliant with Shariah law, marking a pivotal development for the cryptocurrency’s integration into Islamic finance markets. This certification, issued by one of the Middle East’s most authoritative Shariah advisory bodies, validates XRP’s utility in financial transactions and services within jurisdictions adhering to Islamic principles, including Bahrain, Saudi Arabia, and the United Arab Emirates. The decision aligns with broader efforts to bridge blockchain technology with traditional Islamic financial systems, which prohibit interest, gambling, and speculative activitiestitle1^[1].

Shariah compliance is a critical requirement for legitimacy in Islamic finance, a sector valued at over $2 trillion globally. By meeting these ethical and religious standards, XRP gains access to a market where many cryptocurrencies remain excluded due to their perceived speculative nature or lack of alignment with Shariah principles. The SRB’s endorsement underscores XRP’s role as a functional, transparent tool for cross-border payments and remittances, areas where Islamic finance institutions seek cost-effective and ethically compliant solutionstitle2^[2]. With Gulf and Middle Eastern remittances exceeding hundreds of billions annually, XRP’s certification positions it as a viable settlement option for banks, fintechs, and enterprises seeking to streamline transactions while adhering to religious guidelinestitle3^[3].

Bahrain’s progressive regulatory stance has positioned it as a regional hub for fintech innovation, enabling the country to act as a gateway for blockchain adoption in Islamic finance. The Central Bank of Bahrain has long emphasized balancing innovation with oversight, fostering an environment where digital assets can gain traction without compromising ethical or regulatory standards. This approval reflects the country’s strategic vision to lead digital finance in the region, complementing efforts by the UAE and Saudi Arabia to explore blockchain solutions while differentiating itself through swift regulatory actiontitle4^[4]. For Ripple, the endorsement reinforces its position as a leader in cross-border payment infrastructure, offering a utility-driven alternative to cryptocurrencies often criticized for volatility and speculative behaviortitle5^[5].

Market analysts have highlighted the potential financial implications of the SRB’s decision. According to Pumpius, the certification comes amid rising institutional adoption of blockchain technology and could catalyze further demand for XRP. On-chain data indicates sustained accumulation in the $2.70–$3.00 range, signaling renewed investor confidence and suggesting a possible Q4 2025 price rally toward $5.00–$5.50, driven by structural strength in market dynamicstitle6^[6]. Tom Tucker, a crypto analyst, notes that XRP’s strategic positioning—coupled with absorbed July selling pressure and steady demand—creates favorable conditions for a breakout. However, analysts caution that global regulatory clarity and further Shariah endorsements in other jurisdictions will be critical for long-term adoptiontitle7^[7].

The approval also addresses broader challenges in crypto adoption, particularly in conservative markets. While Bitcoin and Ethereum face hurdles due to volatility and energy consumption, XRP’s focus on practical use cases—such as remittance corridors and interbank settlements—aligns with Islamic finance’s emphasis on ethical transparency and efficiency. This dual validation—technological and religious—enhances XRP’s appeal to both institutional and retail investors in Muslim-majority nations, where participation in digital assets often requires alignment with cultural and ethical valuestitle8^[8]. For Ripple, the certification is a strategic milestone, expanding its global footprint and reinforcing its mission to foster financial inclusion through blockchain innovationtitle9^[9].