XRP’s Shariah Approval Opens Access to $2 Trillion Islamic Finance Sector

The Shariyah Review Bureau (SRB) of the Central Bank of Bahrain has announced that

, the cryptocurrency developed by Ripple, meets the requirements of Islamic finance, representing a significant step for its integration into Islamic financial sectors Shariah-Compliant XRP: Bahrain Central Bank's Nod Fuels Ripple Breakout [ 1 ]. This recognition, granted by a leading Shariah advisory institution in the Middle East, affirms that XRP can be used for financial transactions and services in regions governed by Shariah law Shariah-Compliant XRP: Bahrain Central Bank's Nod Fuels Ripple Breakout [ 1 ]. The approval’s impact extends beyond Bahrain, reaching major Islamic finance centers like Saudi Arabia and the UAE, where compliance with religious and ethical standards is essential for both institutional and consumer adoption Shariah-Compliant XRP: Bahrain Central Bank's Nod Fuels Ripple Breakout [ 1 ].

With the SRB’s endorsement, XRP is now positioned as a Shariah-compliant option for cross-border settlements, especially in areas with high remittance activity. Remittance flows in the Gulf and Middle East total hundreds of billions of dollars each year, and XRP’s transparent, cost-effective framework provides banks, fintech companies, and businesses with a compliant alternative to legacy payment systems Shariah-Compliant XRP: Bahrain Central Bank's Nod Fuels Ripple Breakout [ 1 ]. This move supports Ripple’s broader vision to make the XRP Ledger a reliable global payments platform, emphasizing its practical use rather than speculative trading Shariah-Compliant XRP: Bahrain Central Bank's Nod Fuels Ripple Breakout [ 1 ]. Analyst Pumpius observed that this certification is accelerating institutional interest in blockchain, with XRP gaining recognition as a utility token that connects currencies and simplifies international payments Shariah-Compliant XRP: Bahrain Central Bank's Nod Fuels Ripple Breakout [ 1 ].

This approval also highlights Bahrain’s leadership in financial technology innovation. The Central Bank of Bahrain has consistently promoted digital advancement while upholding regulatory standards, and this decision further cements its role as a hub for fintech solutions in the Middle East Bahrain’s Central Bank Boosts XRP with Shariah Compliance Nod [ 2 ]. By granting XRP Shariah-compliant status, Bahrain demonstrates its commitment to spearheading digital finance in the region, setting itself apart from the more cautious regulatory stance of larger Gulf states. This strategic decision broadens Ripple’s access to markets where adherence to Islamic values is crucial for acceptance Bahrain’s Central Bank Boosts XRP with Shariah Compliance Nod [ 2 ].

For Ripple, this certification opens the door to the $2 trillion Islamic finance sector, which has traditionally been hesitant to adopt digital assets due to religious and regulatory concerns Bahrain’s Central Bank Boosts XRP with Shariah Compliance Nod [ 2 ]. Shariah-compliant offerings such as bonds, investment funds, and banking products are fundamental to this market. With XRP’s approval, financial institutions can now integrate Ripple’s technology into remittance channels, interbank settlements, and even Shariah-compliant investment vehicles. Experts suggest this could spark collaborations with Gulf banks and fintech firms, capitalizing on the region’s vast remittance flows Bahrain’s Central Bank Boosts XRP with Shariah Compliance Nod [ 2 ].

The market has responded favorably to the certification, with blockchain data showing consistent accumulation of XRP in the $2.70–$3.00 range since August 2025 Shariah Law Stamp Ignites XRP — $2.70–$3 Buys Set Up $5 in Q4 Breakout [ 3 ]. Prominent crypto analyst Tom Tucker pointed out that this trend is similar to previous accumulation periods, indicating a possible price rally to $5.00–$5.50 in the fourth quarter. The market’s ability to absorb selling pressure in July and the influx of new investors highlight XRP’s underlying strength, though experts warn that Shariah approval in one country does not ensure acceptance everywhere. Ripple still faces legal issues in the U.S., and interpretations of Shariah law can differ across regions Shariah Law Stamp Ignites XRP — $2.70–$3 Buys Set Up $5 in Q4 Breakout [ 3 ].

This certification also addresses the ethical and cultural requirements of Muslim-majority countries, where financial products must comply with Islamic rules against interest, gambling, and excessive speculation. By obtaining SRB approval, Ripple has shown that XRP is transparent and serves a clear purpose, distinguishing it from cryptocurrencies primarily used for speculation Bahrain’s Central Bank Boosts XRP with Shariah Compliance Nod [ 2 ]. This dual recognition—of both technological merit and ethical suitability—enhances XRP’s attractiveness to institutions and individuals seeking legitimacy in digital assets Shariah Law Stamp Ignites XRP — $2.70–$3 Buys Set Up $5 in Q4 Breakout [ 3 ].

Although this approval is a major achievement, Ripple’s expansion in Islamic finance will depend on ongoing engagement with regional Shariah authorities. The SRB’s endorsement acts as a catalyst, prompting other regulators and central banks to consider XRP’s potential. For now, the certification has established XRP as a viable bridge currency for cross-border payments, with its practical, compliance-focused model gaining momentum in markets where ethical standards are paramount Shariah-Compliant XRP: Bahrain Central Bank's Nod Fuels Ripple Breakout [ 1 ].