UK’s Shariah-Compliant Gold Trading Platform Minted May Launch Digital Challenger Bank
UK-based Minted, a Shariah-compliant platform for trading gold, is planning to launch in the coming months.
Co-founder Shahmad Ahmed told Salam Gateway that his company has acquired regulatory approval from the Financial Conduct Authority (FCA) to serve as an e-money business.
He noted that Minted’s management is now waiting to receive its license number which they’re expecting at some point this month.
Minted introduced its beta version last month. The company is planning a full launch of its web-based gold trading platform this month, and will also provide a mobile app by the end of July 2020.
Ahmed said that customers can purchase gold physically via monthly installment plans or a one-off payment.
Minted purchases physical gold from several different refineries, based in the United Kingdom and Nadir Gold in Istanbul, Turkey. Both of these suppliers are listed on the London Bullion Market Association’s (LBMA) good delivery list of partners.
“A range could be that we buy from Spot Price plus 1% up to 4%, depending on the market circumstances of supply and demand.”
Minted reportedly keeps the purchased gold at an “independent bank-grade” vault facility located in Mayfair, London.
Ahmed said his company safeguards customers’ gold via a corporate trustee arrangement with More Group, an accounting company in London.
Alliot’s of London also conducts an independent custody audit every quarter to make sure that the vault holdings are consistent with investor holdings.
Ahmed mentioned that Minted may send the physical gold to verified customer addresses in the UK.
Minted provides a 12 months free insurance plan, after which customers only have to pay £1 per month (other plans are available).
Ahmed noted that Minted is Shariah-compliant based on AAOIFI’s recommendations on gold.
“We realize that the Muslim market is currently underserved when it comes to investment products and we feel our proposition at Minted is a fantastic low-entry, Shariah-compliant proposition for Muslims to invest in a commodity they are familiar with.”
Minted also plans to offer an automated investing plan which would be somewhat similar to what investment app MoneyBox provides.
Minted might also launch a digital challenger bank next year, Ahmed revealed. The neobank will provide various products including investment options for gold, silver, and other precious metals.
He clarified that his company won’t necessarily be an Islamic challenger bank. Instead it would be a banking challenger with “ethical investment products which are also Shariah-compliant,” Ahmed noted.
Minted is also planning to provide a debit card at some point in 2021.
Ahmed confirmed his firm is planning to raise about £1 million to fund development.
The company is planning to expand to Germany, France, Turkey, the US, and Southeast Asia.