The Qatar Financial Center (QFC), has launched a proof of concept (POC) through its Digital Asset Lab introducing a Hedera Blockchain based Digital Receipt System ( DRS) to improve transparency, efficiency and regulatory compliance in Shariah compliant asset backed finance.
As per the press release, this initiative marks a significant step forward in applying blockchain technology to Islamic finance. The new system will operate on HashSphere, a private, permissioned distributed ledger built on Hedera technology and deployed via Google Cloud through QFC’s Digital Asset Lab.
In 2024, Blade Labs a financial technology that tokenizes financial productions and services secured a fintech license at Qatar Financial Center, and admittance to the Digital Asset Lab, as it partnered with The Hashgraph Association.
The newly announced project is a joint effort between QFC Digital Asset Lab which orchestrates the initiative with infrastructure and regulatory oversight, Hashgraph which delivers and operates the underlying blockchain infrastructure, ensuring secure and scalable network performance and Blade Labs who is leading the development of the DRS, including smart contracts and user interfaces tailored to Islamic finance use cases.
Additionally AlRayan Bank will be validating the system’s functionality, offering domain-specific insights and exploring commercialization pathways while Google Cloud is providing the enterprise-grade infrastructure for deployment.
Yousuf Mohamed Al-Jaida, CEO of QFC, said, “At QFC, we are committed to building a strong digital asset ecosystem that supports innovation and real-world applications. Through our Digital Assets Lab, we’re proud to facilitate this pilot as a step forward in exploring how blockchain can bring greater efficiency and scalability to Shariah-compliant financial products. This initiative reflects our continued support for tokenization, financial innovation, and collaboration aligned with the Third Financial Sector Strategic Plan.
Omar Al Emadi, Acting GCEO of AlRayan Bank, added, “Innovation is a cornerstone of Islamic finance, and this initiative reflects AlRayan Bank’s commitment to advancing Shariah-compliant financial solutions that meet the evolving needs of the market. Through our participation in this proof of concept, we reaffirm our role in validating the system’s functionality and laying the groundwork for scalable, practical applications that can strengthen the future of Islamic finance while reinforcing Qatar’s position as a regional hub for financial innovation.”
While Sami Mian, CEO of Blade Labs, explained, “The Digital Receipt System POC will showcase that blockchain, smart contracts, and global identity standards can address the operational bottlenecks that currently prevent Islamic finance institutions from scaling certain Shariah-compliant asset-backed products. By providing a controlled environment to measure actual business outcomes, institutions can evaluate whether this technology approach solves problems worth solving before making larger commitments.”
Eric Piscini, CEO of Hashgraph, emphasized, “HashSphere is built to deliver the trust, performance, and regulatory confidence that today’s financial systems demand. Backed by the scalability and security of Hedera’s enterprise-grade technology, this collaboration highlights how the right infrastructure can unlock new possibilities in both Islamic finance and broader financial innovation.”
In 2024, The Hashgraph Association, a partner with Qatar Financial Centre (QFC) Digital assets Lab announced on LinkedIn, that within the next 12 months it would be working together with stakeholders to explore implementing five innovative use cases, in the areas of equity tokenization, Sukuk Islamic Bonds tokenization, real estate tokenization, sustainability ESG Carbon credits, as well as consumer engagement and loyalty programs. This is part of the partnership that was signed with QFC for a $50 million Digital Assets Venture Studio to develop the Web3 and DLT innovation ecosystem in Qatar.
