Is this crypto halal? Shariah screening report
Ondo US Dollar Yield
USDY
- Price
- $1.14
- Market cap
- $2.18B
- Circulating supply
- 1,910,778,060.838
- 24h change
- -0.19%
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
Stablecoin Ethereum Ecosystem Solana Ecosystem Arbitrum Ecosystem Aptos Ecosystem Purpose and Intended Use USDY is a tokenized note backed by high-quality, short-term US Treasury Bills, launched by Ondo Finance. It aims to provide tokenized exposure to US Treasury yields while maintaining compliance with securities regulations.
Honesty & Founder Intent Clear
USDY tokens are minted when users deposit USD and burned when redeemed. There is no preferential token allocation to founders or early investors, as tokens purely represent ownership of underlying Treasury Bills.
Dealing with Risk & Speculation Clear
Speculative trading of a real asset is treated as trade, not gambling, under the screening framework.
Crypto Overview
Purpose and Utility
Stablecoin Ethereum Ecosystem Solana Ecosystem Arbitrum Ecosystem Aptos Ecosystem Purpose and Intended Use USDY is a tokenized note backed by high-quality, short-term US Treasury Bills, launched by Ondo Finance. It aims to provide tokenized exposure to US Treasury yields while maintaining compliance with securities regulations.
Current Usage
USDY launched in 2023 and has gained significant institutional adoption. It operates on multiple blockchain networks including Ethereum and Polygon, with increasing trading volume and institutional partnerships.
Business Model
The token represents ownership of US Treasury Bills held in custody by qualified institutions. Holders receive daily yield accrual from the underlying Treasury Bills. The model is transparent, with clear custody arrangements and regular reporting of holdings.
Development Activity
Ondo Finance maintains active development of the platform, with regular updates to smart contracts and infrastructure. The project has strong institutional backing and a professional team with experience in traditional finance.
Token Distribution
USDY tokens are minted when users deposit USD and burned when redeemed. There is no preferential token allocation to founders or early investors, as tokens purely represent ownership of underlying Treasury Bills.
Rating Justification
ComfortableUSDY represents actual ownership of US Treasury Bills, with a clear value proposition and transparent operational model. While it generates yield, this comes from legitimate trading of government securities rather than interest- bearing loans or prohibited activities. The token provides a legitimate utility by enabling fractional ownership of Treasury Bills on blockchain networks. The business model is clear, transparent, and involves actual asset ownership without elements of gambling or zero-sum games. While the yield component requires careful consideration, the mechanism of earning through Treasury Bill trading rather than direct lending makes this acceptable from a Shariah perspective.
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.
Comparable assessments
None BUSD
ComfortableComfortable — From a Shariah compliance perspective, BUSD's structure as a fully-backed stablecoin with transparent 1:1 dollar reserves aligns with Islamic financial principl
Open reportEURC EUROC
ComfortableComfortable — EURC demonstrates clear utility as a euro-backed stablecoin, facilitating legitimate financial transactions and serving as a digital representation of the euro.
Open reportFirst Digital USD FDUSD
ComfortableComfortable — FDUSD operates as a legitimate stablecoin with clear utility in facilitating cryptocurrency transactions and serving as a stable store of value. The business mo
Open reportPax Dollar USDP
ComfortableComfortable — From a Shariah compliance perspective, USDP represents a straightforward digital representation of US dollars with clear utility for transactions and value stor
Open reportPayPal USD PYUSD
ComfortableComfortable — After analyzing PYUSD's structure and operations, the stablecoin appears to align with Islamic finance principles. The key factors supporting this assessment in
Open report
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.
- corpus