Pi Network partners with Sidra Bank to build an interest-free financial system

In the traditional financial system, interest (riba) is almost everywhere — whether in savings accounts, credit cards, or loan products. For the hundreds of millions of Muslims seeking Sharia-compliant financial products, this phenomenon creates ongoing tension between faith and access to modern financial services.

Pi Network has been dedicated for years to bringing its large mobile user base into the crypto space, while Sidra Bank positions itself as a decentralized Islamic digital bank in the Web3 era. For Gate users, the collaboration between Pi Network and Sidra Bank is not just another partnership case but a real-time experiment on whether interest-free, AI-assisted banking layers can be widely implemented on-chain.

Overview of Sidra Bank: Why Does the Interest-Free Vision Matter?

Pi Network’s original goal is to enable users to “mine” on their phones without expensive hardware. Over time, it has accumulated a large user base and, through AI-supported identity verification, has gradually completed KYC and migrated to the mainnet.

Meanwhile, Sidra Bank, as a decentralized Islamic DeFi platform, focuses on:

• Sharia-compliant financial products
• Interest-free models (eliminating riba)
• Asset-backed value systems and transparent on-chain contracts

Sidra Bank does not chase speculative hype but aims to build an ecosystem of savings, payments, and financing that follow Islamic banking principles — replacing fixed interest with profit-sharing and service fee models.
Broader context: Islamic finance is already a trillion-dollar industry and continues to grow. If Sidra Bank can translate familiar halal financial concepts into intuitive Web3 products, it could unlock a large, underserved user base — those who desire crypto and DeFi but prefer interest-free structures.

For Gate, Sidra Bank is at a critical intersection of DeFi, AI, and faith-driven financial design, making it a key focus.

Collaboration between Sidra Bank and Pi Network: How Sidra Bank Builds an Interest-Free Financial Layer

The goal of the Pi Network and Sidra Bank partnership is to build an “interest-free financial system” on the evolving Pi mainnet. Their roles are clearly divided:

• Pi Network provides a vast native mobile user base and AI-supported on-chain identity and KYC systems.
• Sidra Bank contributes Islamic legal rules, contract templates, and interest-free DeFi-style savings, payments, and financing mechanisms.

In practice, Sidra Bank is attempting to launch asset-backed interest-free products between its native Sidra Coin (SIDRA) and Pi (PI). Unlike traditional fixed-rate loans, users may participate in modes such as:

• Cost-plus sale contracts (similar to murabaha)
• Partnership arrangements (similar to musharaka), sharing profits and risks
• Service fee-based products, avoiding interest while generating revenue for the bank layer

All processes are executed automatically via on-chain smart contracts.
For Gate users, this creates a layered model: Pi Network handles user coverage and identity verification, Sidra Bank provides Islamic-compliant financial logic, and the related fund flows are expected to be reflected in on-chain data and token markets, allowing Gate users to monitor and trade in real-time.

Sharia Principles and AI Design in Sidra Bank: Analyzing the Pi and Sidra Bank Collaboration Architecture

This collaboration is often described as a “self-governing banking network” — Sidra Bank aims to integrate religious rules, AI, and blockchain into a unified system.

At a high level, Sidra Bank is advancing three core tasks:

1. Encoding Islamic principles into smart contracts
Sidra Bank’s contracts avoid explicit interest, limit excessive uncertainty or gambling-like structures, and prioritize asset-backed or real-economy exposures rather than pure synthetic speculation. The goal is to provide a familiar Islamic banking model with full on-chain transparency and verifiability.

2. Using AI as a trust and compliance layer
AI accelerates Pi’s KYC process, enabling rapid identity verification and suspicious activity screening. Theoretically, Sidra Bank can also leverage AI models to analyze transaction patterns, identify non-compliance, and ensure all products under the Sidra Bank brand adhere to its internal Sharia standards.

3. Automating daily banking decisions
Sidra Bank does not rely on traditional credit scoring but infers “trust profiles” based on on-chain behavior: repayment habits, product interactions, risk signals, etc. Contract limits, fees, and eligibility are automatically adjusted based on on-chain records, eliminating cumbersome offline documentation.

For experienced DeFi users, Sidra Bank can be seen as an attempt to create a new on-chain, Sharia-compliant banking model: smart contracts as products and rules, AI as a compliance and risk engine, and Pi Network providing a large-scale, identity-verified mobile user base.

Market Environment of Sidra Bank: Islamic Finance, Pi Users, and the Native Asset

Sidra Bank’s market potential lies in:

• Islamic finance already reaching trillions of dollars and expanding as more countries and institutions adopt Sharia-compliant products.
• Despite controversies and delays, Pi Network has amassed a large mobile user community, many of whom are in regions with strong demand for halal financial services.

As some users begin to adopt Sidra Bank products, a sizable on-chain interest-free financial ecosystem could gradually form.

On the token level, Sidra Bank issues Sidra Coin (SIDRA) as its core asset. Recent market data shows SIDRA at a relatively low price with moderate daily trading volume, reflecting its early stage and gradually increasing liquidity. The main difference between SIDRA and many other tokens is not just a “story” but its role as the primary circulating unit of a Sharia-compliant banking layer.
For Gate users, this means:

• They can track SIDRA prices, liquidity, and on-chain activity in real-time via Gate’s market tools and Web3 analytics.
• They can follow ecosystem news — such as Pi mainnet progress or new Sidra Bank product launches — and assess their impact on SIDRA’s risk and demand.

These do not guarantee SIDRA’s success but explain why Sidra Bank is gaining increasing attention within the Pi community and halal finance circles.

Challenges Facing Sidra Bank: Factors That May Hinder the Realization of the Interest-Free DeFi Vision

Despite the ambitious experiment by Pi and Sidra Bank, many challenges remain.

Regulatory and Sharia governance
Even if smart contracts achieve interest-free status, regulators need to define the decentralized “Islamic bank” across multiple jurisdictions. Meanwhile, differing scholarly opinions on compliance standards may exist. Sidra Bank must establish a robust, credible Sharia governance system and remain adaptable as regulations evolve in DeFi and AI financial policies.

Technical and security complexities
Pi Network itself is already complex due to AI-supported KYC and long-term security goals. Adding multiple layers of Islamic financial structures, AI compliance checks, and cross-asset logic involving SIDRA, PI, and other tokens increases attack surfaces: oracle manipulation, contract vulnerabilities, risk model errors, governance abuse, or AI misjudgments.

Implementation and user adoption risks
Pi Network’s progress, token unlock schedules, and real-world application scenarios are still questioned. Without converting a large user base into active mainnet participants, Sidra Bank’s ecosystem expansion could be limited.

Meanwhile, Sidra Bank itself is in early development, with its business model, revenue sharing, and long-term tokenomics still evolving. Its Sharia-compliant branding can attract initial users, but sustained growth ultimately depends on returns, user experience, transparency, and trust.

For Gate users, these challenges highlight that innovation and risk are closely intertwined — this is not a “buy and forget” story.

Outlook for Sidra Bank: What Gate Users Should Watch for in the Sidra Bank Ecosystem

From Gate’s perspective, Sidra Bank and Pi Network together form one of the most exploratory experiments in interest-free, AI-enhanced crypto banking.

If successful, it could set a precedent for:

• DeFi systems replacing interest with profit-sharing and service fees
• AI embedded in identity verification and behavior scoring
• Sharia-compliant, borderless banking infrastructure accessible to mobile users

Even if it doesn’t fully realize expectations, it will provide valuable insights into the large-scale integration of AI, DeFi, and religious finance.

Gate’s Role: Providing Navigation Tools for Users

• Market infrastructure: order books, liquidity, and Web3 analytics to help users monitor assets related to Sidra Bank and Pi in real-time.
• Educational content: objective explanations of how Sidra Bank and similar projects operate, their core narratives, risks, and opportunities.

The core message is clear: Pi Network and Sidra Bank are conducting the most prominent on-chain exploration of interest-free, AI-augmented financial systems.

Whether you are a Pi pioneer, a halal finance investor, or a Gate user observing DeFi ecosystems, Sidra Bank is a narrative worth following — accompanied by curiosity, data, and rational risk awareness.