Is this crypto halal? Shariah screening report

Gemini Dollar

GUSD

Comfortable

Price: $0.999715
Market cap: $39.57M
Circulating supply: 39,583,995.12
24h change: -0.03%

Report generated 8/27/2026, 6:34:27 PM · stored corpus assessment · confidence 88%

Crypto Halal Report Criteria

We use a disciplined framework to determine if a digital asset is Comfortable from a sharia perspective, based on three core pillars.

Purpose & Real-World Value Clear

Gemini Dollar (GUSD) is a regulated stablecoin launched by the Gemini cryptocurrency exchange in 2018. It is designed to maintain a 1:1 peg with the US Dollar, with each GUSD token being backed by an equivalent amount of USD held in FDIC-insured bank accounts.

Honesty & Founder Intent Clear

GUSD tokens are minted when users deposit USD and burned when redeemed, maintaining the 1:1 peg. The system is centralized, with Gemini controlling the minting and burning process. This centralization, while limiting decentralization, ensures regulatory compliance and stability.

Dealing with Risk & Speculation Clear

Speculative trading of a real asset is treated as trade, not gambling, under the screening framework.

Crypto Overview

Store Of ValueStablecoinAsset-Backed StablecoinEthereum EcosystemNear Protocol Ecosystem

Purpose and Utility

Current Usage

GUSD has achieved notable adoption within the cryptocurrency ecosystem, particularly on the Gemini exchange and various DeFi platforms. As of 2024, it maintains a market presence with a circulation of approximately $700 million. The token is primarily used for trading, remittances, and as a stable store of value during market volatility.

Business Model

The primary utility of GUSD is to serve as a stable medium of exchange and a bridge between traditional finance and cryptocurrency markets. Gemini maintains full reserves for all GUSD tokens in circulation, with regular attestations by independent accounting firms to verify the 1:1 backing. The stablecoin operates on the Ethereum blockchain as an ERC-20 token.

Development Activity

Gemini actively maintains and updates the GUSD infrastructure, with regular security audits and compliance reviews. The development focus is primarily on maintaining stability and security rather than adding new features.

Token Distribution

Rating Justification

Comfortable

From a Shariah compliance perspective, GUSD demonstrates several positive characteristics: 1) It represents actual ownership of an underlying asset (USD), 2) It serves clear utility purposes in facilitating trade and value transfer, 3) The business model is transparent with regular audits, 4) The backing of real assets provides intrinsic value. While the underlying USD reserves are held in traditional banks that may engage in interest-bearing activities, the token itself functions as a digital representation of fiat currency and its primary use cases (trading, transfer of value, stable store of value) are permissible under Islamic principles.

While we find this token comfortable to invest in from a Shariah-screening perspective, this does not imply we think it is a strong investment.

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Disclaimer: These reports are findings of AI analysis and cannot be guaranteed to be accurate. Ratings reflect opinions derived from automated criteria applied to the sources you submitted and a corpus of prior assessments. This is not a fatwa and does not determine Islamic law. Ratings may change as projects evolve. Always conduct your own research before investing.

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