The second model started to spread relatively recently in the 20th century and is associated with countries whose population follows Islam. The fundamental difference of the second model lies in the prohibition of earning interest income, and the creditor can only earn from their funds as an equal partner. Investments in companies involved in alcohol, weapons, cigarettes, and gambling are also unacceptable. This model forms the basis of the so-called Islamic economy, particularly Islamic banking.

Although the volumes of the Islamic financial sector significantly lag behind traditional financial institutions today, this sector is developing at an accelerated pace. In 2012, Muslims accounted for 23% of the world’s total population. By 2021, their population had increased to 24%. Muslims are the fastest-growing ethnic group in the world, growing at approximately 1.8% per year, and by 2030, the number of Muslims will reach 2.2 billion people. Islamic financial assets reached $2.88 trillion in 2019, and from 2019 to 2024, an annual growth rate of 5% is forecasted. By 2024, total assets are expected to exceed $3 trillion. Considering that ethical and sustainable investing is a byproduct of Sharia law, which establishes the principles of Islamic financial technologies, it is of interest to Western societies that seek to join this initiative.

The Role of Fintech Solutions in the Development of Islamic Banking.

Fintech companies offering their services in the Islamic economy primarily target a new customer base, which represents the young Muslim population worldwide. This demographic group has been identified as a decisive factor in determining the prospects of Islamic Fintech technologies, as they account for 29% of the global population under 30 years old. This younger demographic is well-versed in technology due to their high level of access and use of mobile and internet services compared to the global average.

The Fourth Industrial Revolution is changing the world around us faster than ever before. One of the recently emerging solutions is embedded finance — the seamless integration of financial services by businesses. The main goal of embedded finance is to simplify customer interactions by eliminating additional steps to obtain financing, where customers can access both the product and financial service in one place. The Quicktoken platform offers investors and businesses seeking investment the opportunity for direct interaction, where the bank acts as an intermediary, aligning with the principles of Sharia.

While embedded finance is a new concept, it is organically embedded in the foundations of the Islamic economy alongside the prohibition of interest income. Islamic economics does not encourage the separation of the financing process from real economic activities. In fact, the entire modern Islamic banking industry was developed to restore the connection between finance and business through trade and investment contracts such as Murabaha and Wakala. These Islamic financial principles bridge the gap between finance and business, which is the core philosophy of embedded finance.

The Quicktoken platform is designed to become a connecting link, bringing together all types of Islamic financial institutions with various types of retail sellers, whether they offer goods or services. Quicktoken is a revolutionary and innovative solution that aims to redefine the functioning of Islamic finance, making it more efficient and inclusive. With such a digital solution, Islamic finance becomes more accessible to all segments of society. Quicktoken helps Islamic financial institutions redistribute financing risks to investors and expand their reach to new areas and communities that they would not typically be able to reach using traditional investment technologies.

Example of Financial Operations of Islamic Financial Institutions Used on the Quicktoken Platform:

To ensure the functioning of the platform in accordance with Sharia principles, financial operations such as Wakala and Murabaha are utilized. Let’s outline the main characteristics of these operations in the context of their application on the Quicktoken platform.

Wakala is a contract equivalent to an agency agreement. On the Quicktoken platform, its object is monetary funds, and it can be seen as a type of trust management contract entered into for a specific period that cannot be changed. The following norms are established for Wakala used on the platform:

- The agent is granted complete freedom in choosing the method of investing the principal’s funds (within Sharia restrictions).

- The agent is obliged to regularly inform the principal about the progress of executing the mandate.

- The agent receives a fixed remuneration for managing the principal’s assets, regardless of the outcome.

- The agent has the right to retain a portion of the income arising from executing the mandate as an additional reward for success if the contractual financial obligations to the principal are fulfilled and the possibility of such retention is stipulated in the agency contract.

- The principal assumes all standard risks associated with managing their funds, provided that the agent acts in good faith, professionally, and ethically.

- The agent is liable for the loss of the principal’s funds and missed opportunities resulting from fraud, misappropriation, negligence, etc.

- The agent is not liable for the loss of the principal’s funds and missed opportunities resulting from events beyond their control.

- The agent and the principal undertake not to terminate the contract for a certain period of time.

Murabaha is a contract for selling goods with a markup from the bank to the customer. In simplified terms, the operation involves the bank acquiring the necessary goods and subsequently selling them to the customer, with the cost of the contract object, the expenses associated with the procurement and delivery process, and the bank’s margin (markup) known to both parties and documented in the contractual documentation.

The Murabaha contract will be valid only if:

- The contract object physically exists at the time of contract conclusion.

- The seller is not only legally the owner of the object but also has the ability to dispose of it.

- The contract conclusion and execution occur simultaneously.

In modern practice, Murabaha takes the form of Murabaha on an order to purchase, which reflects the essence of the first stage of the financing process. In order to establish a formal basis for cooperation, the bank’s customer places a pre-order with the bank, but the offer and acceptance are not yet in effect. Although the sales contract between the parties has not been concluded, quasi-contractual relations arise due to the Sharia concept of promise. Today, Murabaha-based operations are always accompanied by a Bai’ Bithaman Ajil (BBA) contract, which involves deferred payment. The bank and the customer may agree that the payment will be made on a specific future date as a lump sum, but more often the payment is deferred, and the terms of this deferral are part of the contractual documentation.

As a result, the bank has the right — and it exercises this right — to impose a higher markup (margin) compared to the markup for immediate payment upon delivery. The main argument for the permissibility of such an increase is that it does not involve a growth of money from money but an increase in the price of a real asset with inherent value. Additionally, selling with deferred payment provides convenience for the customer. It can be said that this is a kind of additional service that has its price.

However, the main condition for the price markup in Murabaha, as in any Islamic debt contract, is that the seller assumes the risk as the owner of the goods until their sale. In addition to the risk of damage or loss, the bank may incur losses in case the customer refuses to fulfill their promise, provided it is given in a form that cannot be brought to court.

To implement their intentions, the bank and the customer must perform a series of actions. The first stage of financing in the form of Murabaha involves concluding a master agreement. It documents the subject of the transaction, the approximate amount of the transaction, the bank’s margin, all rights and obligations of the parties, etc. By signing this document, the bank expresses its readiness to search the market for the goods that the customer may demand during the term of the master agreement. In turn, the customer’s signature signifies their commitment to purchase the goods.

Ideally, the bank should study the market, select suppliers, and organize the delivery. However, this would require significant expenses to maintain qualified personnel and support their activities. Therefore, guided by the master agreement, the bank appoints the customer as its agent by concluding a corresponding contract with them. It should be noted that the agent is not entitled to any remuneration in this case.

Acting as an agent, the customer carries out all necessary actions on behalf of the bank and then, in their primary capacity, sends a request to the bank to acquire the goods, indicating the price, as well as providing a detailed description of the goods and the seller’s details. The bank transfers the required amount directly to the seller. The agent acknowledges receipt of the goods, informing the bank in writing, thereby confirming the compliance of the transaction object with the terms of the master agreement.

The work scheme of the Quicktoken platform for Islamic finance:

Now let’s consider how Murabaha and Wakala contracts work on the Quicktoken platform.

1. The bank enters into Murabaha agreements with clients, ensuring that each contract is divided into multiple small contracts with the same price.

2. The bank transfers this package of Murabaha contracts to the platform for tokenization. The bank agrees with the platform on the expected parameters of QTK token packages (yield, placement period, placement price).

3. The platform creates packages of QTK tokens and sells them to the bank’s principals through Wakala contracts in exchange for monetary funds.

4. The platform transfers the received funds from the principals to the bank.

This algorithm is schematically represented in Figure 1. As a result of this scheme, the bank acts as an intermediary and effectively connects Murabaha contracts to its principals through Wakala contracts. The bank can charge its commission for this operation as an intermediary and allocate a portion of this commission to the platform. All risks related to the Murabaha contracts are transferred to the principals. Of course, the bank continues to work with all its Murabaha clients, but no longer as the owner of such contracts, but as an intermediary between the clients and the principals. This allows the bank to earn a commission at once, recover previously invested funds in Murabaha contracts, and use these funds to form a new Murabaha package with new clients.

Fig. 1.

The redemption of QTK packages occurs in the sequence depicted in Figure 2.

1. Clients repay their debts to the bank (now acting as an intermediary) for the Murabaha contracts.

2. The bank transfers the clients’ funds (minus its commission) to the platform.

3. The platform transfers the funds (minus its commission) to the principals based on the Wakala contracts.

4. Principals present the QTK packages to the platform for redemption.

5. The platform returns the Murabaha portfolio claims to the bank.

Conclusion:

In conclusion, it should be added that principals have the option to exchange QTK packages on the secondary market using the Quicktoken platform’s application for fiat currency, without having to wait for their redemption period. This allows for a liquid instrument that is not only income-generating and reliable (due to the inclusion of Murabaha claims from different clients in one QTK package) but also offers liquidity. There are currently no comparable instruments available in the market, which provides confidence in its successful development.

For the latest Quicktoken news and developments as they arrive, visit our:

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Platform Quicktoken as a Driver for the Growth of Islamic Financing was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

CRYPTO EXPLORER AMA Series With QuickToken

Prize: 50$ USDT

Date: 11th July 2023

Time: 2PM UTC

Venue: https://binance.com/en/live/video?roomId=2142435…

Rules:

. Follow

@CryptoExplorerT

@Quicktokenorg

Binance Live AMA 11 th July 2023 2 pm UTC Yury Yanovich CTO of QuickToken was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

Friends 👋 Introducing a new partner.

Launch of SanR Club for Quicktoken

We are launching a paper trading competition on SanR for the Quicktoken audience. SanR allows its users to practice cryptocurrency trading without risking real money, in a convenient and easy-to-use environment.

All paper trades — “signals” are stored on-chain, which makes track-record predictions completely reliable and prevents manipulation.

Using the product is completely free of charge and the gas payment is compensated by the gas stations. All actions take place on your own SanR Sidechain.

In the first epoch there will be a prize pool of 50 USDT. Which will be divided between first 5 places of Total Positive Performance (dragon league) at a ratio of:

1️⃣ — 15 USDT

2️⃣ — 12.5 USDT

3️⃣ — 10 USDT

4️⃣ — 7.5 USDT

5️⃣ — 5 USDT

The first epocha (trading competition season) of the competition has already begun and will run until July 17.

Join the club and start trading at👇

QuickToken x SanR - paper trading competitions for your community!

#QUICKTOKEN #PARTNERSHIP #SANTIMENT was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

📡We are delighted to notify our next TEXT AMA with QuickToken.

📆 Date : 19 June 2023

⏰ Time : 6 PM UTC

🏘Venue: @geekchatglobal

✅ Reward : 50$

🎧 Speaker : Viacheslav Davydov |

There will be 3 segments lasts for 45 minutes approximately

🥰 Segment 1: Introduction

🥰 Segment 2: Twitter question

🥰 Segment 3: Free — asking

🔴Rules🔴

📈To be eligible for Rewards:

✔️Join QuickToken — Telegram

✔️Follow QuickToken — Twitter

✔️Join GEEK — Telegram

✔️Follow GEEK — Twitter

💬 Drop your Twitter question⬇️

https://twitter.com/geek_chat1/status/1670128835243970560?t=yar6dM4iNH4yuNaCkD_g7A&s=19

AMA Session with CEO #Quicktoken Viacheslav Davydov 19.06.2023 ,at 6 PM UTC was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

Crypto Global Community Is Glad To Announce Our Next AMA with QuickToken 13 June 2023, 2 PM UTC

♻️ Voice AMA ♻️

🗣️

🗓 DATE : 13 June 2023

⏰ TIME : 2 PM UTC

🏚𝐕𝐞𝐧𝐮𝐞: @CryptoGlobal_Chat1

💰 Reward pool: 50$ USDT

➡️ Segment1: project Introduction

➡️ Segment2: (Twitter Question 3) Segment

➡️ Segment3: (Live Question 2)

‼️ Rules to Follow AMA ‼️

Join Telegram

Crypto Global Community

QuickToken

Follow Twitter

Crypto Global Community

QuickToken Like & RT Twitter Post

ℹ️Crypto Global Community Detailsℹ️

Website Telegram Twitter Instagram Discord Medium You Tube

ℹ️ QuickToken Detailsℹ️

Website Twitter Telegram YouTube

AMA Session 13.06.2023 was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

MARSBASE OTC — The first decentralized OTC desk. Make large crypto transactions while skipping order books and decentralized liquidity pools with smart contacts of Marsbase

1️⃣First Defi OTC Desk

Trade any volume of any token using unique p2p tools without slippage & price impact

2️⃣Connecting whales & retail investors

Discover the new DeFi environment where ANYONE can trade with premium conditions

3️⃣Perfect for VCs, projects, miners, whales & retails

— When there is not enough liquidity in token pools for your trade

— When 2 parties agreed on the conditions of a deal and want to secure their risks

— Perfect for volatile or bearish market

— For safely exiting a project without dropping the token’s price

— For selling only part of your asset whithout dumping another

— When you want to trade your vested allocations

— When you need anonymous, quick exit.

— When you can’t find a whale for your large deal

4️⃣Utility token MBASE

First multichain utility OTC token used all over the MARSBASE landscape

5️⃣Tradable vesting reduces investment risks

We create a secondary market protocol for vested allocation. These tools allow you to buy, sell, split and accelerate your vested allocations of Mbase and other tokens. It is possible to exit the project at any time with minimal risk and maximum profit.

Website | Twitter | Medium | Telegram

New Partnership with Marsbase was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

Website | Twitter | Medium | Telegram

Sber conference about #quicktoken was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

On May 30, 2023 Quicktoken CEO Vyacheslav Davydov will participate in Sber’s First International Forum for Blockchain Industry Participants .

👥 The event will also be attended by representatives of medium and large businesses interested in issuing digital financial assets, developers, startups ready to create blockchain-based solutions, the professional community, as well as representatives of the legislative and regulatory authorities.

📍Address: 32 Kutuzovsky Prospekt, building G, Moscow

❗️ The discussion will focus on: Trends in DeFi, Blockchain technology regulation, Web3 industry development, and more.

Website | Twitter | Medium | Telegram

Sber blockchain conference 30 may 2023 was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

Our partner Legat Business Congress Investment and Technology in Turkey is holding the SECOND INVESTMENT AND TECHNOLOGY CONGRESS!

The first congress was held April 28–29 in IZMIR, which the QuickToken team, as an info-partner, announced in this post https://t.me/QuickTokenorg_eng/20234

⌨️ See a brief video report from the forum in this video

https://youtu.be/92Q6y9wQd7c

And the second one will take place on May 17–18 ANTALiA!

✈️18.05.2023 from 14:00 to 20:00

SUMMIT LEGAT BUSINES — business talks and the most powerful networking at the Grill House Restaurant.

📍Location:

https://goo.gl/maps/QHuyokMnf7jcpuA86

#legat_business_congress #Партнерство #Quicktoken

For the latest Quicktoken news and developments as they arrive, visit our:

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Our partner Legat Business Congress Investment and Technology in Turkey is holding the SECOND… was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.

Tokenization is the process of translating rights to various assets into a token form, which can be used for exchange and value storage. There are different types of tokenization, each with its own features and applications. This can include rights to perform actions, rights to securities or real estate. Researchers have identified eight different archetypes of tokenization. Let’s take a closer look at them:

- Programmable money

Programmable money based on tokenized currencies, such as stablecoins and central bank digital currencies, are an efficient means of exchange and value storage. They eliminate the drawbacks of existing solutions and significantly improve processes by allowing for the automation of many services on decentralized platforms, such as micro payments. However, the implementation of such solutions requires appropriate regulation, which is still in the development stage. Some countries are already working to create conditions for tokenization.

- Smart bankable assets (stocks, bonds, etc.)

Smart assets, such as stocks, bonds and other financial instruments, are designed to optimize processes and simplify the generation of investment income. By using the logic of financial contracts, it is possible to automate cash flow management and voting, which can lead to increased liquidity and real assets. However, this requires appropriate regulation, which is still in the development stage. Some countries are already working to create conditions for the use of smart assets.

- Availability of illiquid assets (Opening of illiquid assets — art, real estate, cars, etc.)

The main function of which is to act as an intermediary between the value of the asset and the asset itself. Thus, tokenized assets can be divided, unlike physical objects (such as a car or paintings).

- Tokenized crowdfunding (Crowd Funding — startup capital, P2P lending, etc.)

Became popular thanks to the introduction of ICOs, which allow for a reduction in participation costs by eliminating intermediaries. Previously, many related business models were inefficient, but with tokens, efficient real-time crowd investments are possible, ranging from private projects to participation in venture capital. However, the main focus is on tradability, which is the basis for increasing liquidity and enabling fast and flexible trading operations.

- Access to services

Access to services where tokens serve as a tool for obtaining rights to a specific service. Various industries use tokenized licenses or memberships to provide easy and efficient access to decentralized platforms. These tokens are classified according to the functions they provide.

- Platform Governance

Platform governance is an abstract area of application of incentive mechanisms, such as tokenization, as a means of coordination and collaboration. For example, users can receive tokens as a reward for performing certain tasks or behaviors (such as mining), which stimulates community building and participation in voting. Tokens can have social value, managing the right to vote and creating a sense of community, and not necessarily based on future monetization.

- Digital Sovereignty (CryptoKitties, etc.)

Digital sovereignty is used to describe applications that require unique authentication and decentralized access control for token owners. To ensure authenticity and non-reproducibility of assets, they are implemented in the form of non-fungible tokens (NFTs). Thus, users can manage their game assets independently of the platform owner, as implemented in CryptoKitties.

- Track & Tracing Tokenization

Track & tracing tokenization is a type that is used to establish a secure record of ownership between interested parties. Such use cases are often associated with logistical processes in various industries and help organizations improve the transparency of the life cycle of various assets, including both material and immaterial ones.

What are some prominent examples of tokenization currently?

Quicktoken is the first blockchain platform for tokenizing financial assets. Banks can sell tokenized credit portfolios on the platform to scale, while investors can earn passive income from their investments.

HOW QUICKTOKEN WORKS

QTK Token — Non-Fungible Token (NFT) representing a share of a credit portfolio.

QTKX Token — Primary payment instrument on the platform.

1. Portfolio Tokenization

Quicktoken platform and the bank agree on the parameters of the issued tokenized portfolio QTK based on the bank’s credit portfolio parameters.

2. Investor Portfolio Acquisition

Initial acquisition of a tokenized portfolio is only possible with the platform’s QTKX token. Already issued portfolios can be acquired on the secondary market with fiat currencies and cryptocurrencies.

3. Credit Portfolio Redemption

At the end of the credit portfolio’s term, the bank buys back the portfolio according to pre-agreed conditions. The tokenized portfolio is burned using QTK, and the investor receives profit in fiat currency.

WHAT MAKES QUICKTOKEN UNIQUE?

Guaranteed profitability

Quicktoken creates balanced portfolios of assets with varying risks and returns. The result is guaranteed with the reliability of bank deposits, while the return is significantly higher.

Collateral

The Quicktoken platform and its tokens are backed by real financial assets. Each token represents a share of a credit portfolio issued by a bank or other organization.

Income in currency

Investor payments are made in fiat currency. Thus, the profit does not depend on the value of the internal token.

What urgent problems does QuickToken solve?

Problem: The market mainly offers high-risk instruments, or the interest rate on them is very low.

Solution: Discounting loans included in the portfolio based on their return and risk.

Problem: The amount of loans issued by banks and businesses is limited by their own funds.

Solution: Tokenization and sale of credit portfolios allow banks to issue new loans without limitation on freed-up funds.

Problem: Trading CDOs on traditional markets has a high entry barrier — bureaucracy, minimum portfolio, centralization.

Solution: Quicktoken makes entry to the platform instantaneous and eliminates bureaucracy and centralization through blockchain technologies.

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Quicktoken and tokenization was originally published in Quicktoken on Medium, where people are continuing the conversation by highlighting and responding to this story.