Is this crypto halal? Shariah screening report
None
USDC
- Price
- $0.999970
- Market cap
- $74.04B
- Circulating supply
- 74,040,117,511.592
- 24h change
- 0.00%
Report generated 8/27/2026, 6:34:28 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
USDC is a stablecoin issued by Circle that is designed to maintain a 1:1 peg with the US Dollar. Each USDC token is backed by actual US dollars and short-term US government bonds held in regulated financial institutions. The primary purpose is to provide a stable, digital representation of the US dollar that can be used for payments, trading, and as a store of value in the digital asset ecosystem.
Honesty & Founder Intent Clear
USDC is minted when USD is deposited and burned when redeemed, maintaining a transparent 1:1 backing. There is no token allocation to founders or early investors as it operates purely as a stablecoin.
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
USDC is a stablecoin issued by Circle that is designed to maintain a 1:1 peg with the US Dollar. Each USDC token is backed by actual US dollars and short-term US government bonds held in regulated financial institutions. The primary purpose is to provide a stable, digital representation of the US dollar that can be used for payments, trading, and as a store of value in the digital asset ecosystem.
Current Usage
USDC has achieved significant adoption as one of the largest stablecoins by market capitalization. It is widely used across major cryptocurrency exchanges, DeFi protocols, and payment systems. Major financial institutions and payment providers have integrated USDC into their services.
Business Model
Circle generates revenue through treasury management of the reserve assets backing USDC, while maintaining full backing of all tokens. The business model is transparent, with regular attestations of reserves by Grant Thornton LLP. Circle is regulated as a money transmitter in the US and complies with relevant financial regulations.
Development Activity
Circle maintains active development of the USDC infrastructure and continues to expand its utility through partnerships and integrations. The company regularly updates its compliance frameworks and technological infrastructure.
Token Distribution
USDC is minted when USD is deposited and burned when redeemed, maintaining a transparent 1:1 backing. There is no token allocation to founders or early investors as it operates purely as a stablecoin.
Rating Justification
ComfortableFrom a Shariah compliance perspective, USDC functions as a digital representation of fiat currency with clear utility in facilitating transactions and trade. The business model is transparent and based on actual asset backing rather than speculation or interest-bearing mechanisms. While the underlying US Dollar reserves may be held in interest-bearing accounts, the token itself serves as a medium of exchange and store of value, similar to using fiat currency in traditional commerce.
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
Tether USDt USDT
ComfortableComfortable — From a Shariah compliance perspective, USDT functions primarily as a digital representation of fiat currency, facilitating trade and transactions. The underlyin
Open reportNone 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 reportEthena Staked USDe sUSDe
UncomfortableUncomfortable — Sharia Compliance Analysis The core mechanism of sUSDe raises several concerns from an Islamic finance perspective. The primary issues are: 1) The yield generat
Open reportEthena USDe USDe
UncomfortableUncomfortable — After careful analysis, USDe's core mechanism involves elements that are not compatible with Islamic finance principles. The main concerns are: 1. The use of in
Open reportEurite EURI
UncomfortableUncomfortable — Based on the analysis of Eurite (EURI), the primary concern for Sharia compliance stems from its fundamental business model structure. While EURI operates as a
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