USDC

USD Coin

DOUBTFUL — DATA INCOMPLETEcrypto

Is USDC Halal?

Stablecoin backed by USD and Treasury bonds — riba concerns in reserves.

What You Should Know

Circle's May 29, 2026 USDC reserve examination reports $75.962B of reserve assets against $75.885B of USDC in circulation, including approximately $67.233B of Treasury securities and Treasury repurchase agreements. Coverage is documented, but reserve economics, redemption and use-case questions keep the verdict DOUBTFUL.

⚠️ Concerns

  • Treasury securities and repos comprise approximately $67.233B of reserves
  • Reserve income and Circle profit are not allocated by Sharia category
  • Redemption, custody and timing-adjustment risks
  • Use in leverage, lending or derivatives

Current quantitative Sharia screen

Based on USDC reserve examination report figures for the period ended 2026-05-29; calculated 2026-07-14.

Protocol asset · issuer screen N/A
Issuer financial ratios are not applicable to this asset. This is a decentralized protocol or token, not an operating company or fund with an issuer balance sheet, debt schedule, receivables or revenue statement. The placeholder inputs are retained for schema integrity only and are not a financial classification. The methodology rows below preserve the qualitative, school-dependent analysis.
FTSE Yasaar issuer screen (not applicable)
v4.6, February 2026
Financial
Not calculated
Overall
Incomplete

Company issuer ratios do not apply; approximately 67,232.994 million of reserve assets are Treasury securities or Treasury repos, while contract and reserve treatment remain incomplete.

MSCI Islamic issuer screen (not applicable)
October 2024 methodology
Financial
Not calculated
Overall
Incomplete

No issuer-equity balance sheet or revenue denominator is available; reserve composition and currency-token treatment remain unresolved.

Malaysia SAC issuer screen (not applicable)
single 5% activity benchmark adopted November 2025
Financial
Not calculated
Overall
Incomplete

Issuer financial ratios do not apply; Treasury-backed reserve economics require separate scholar review.

Market-cap issuer methods (not applicable)
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

Token market capitalization is not an issuer-equity denominator and cannot settle reserve or currency-contract questions.

Business-activity disclosure

USDC is a dollar-referenced token backed by a reserve fund and segregated cash accounts. The current reserve examination provides strong coverage evidence but also shows substantial Treasury and Treasury-repurchase exposure, so a simple interest-free cash-token classification is incomplete.

Limitation: This is a reserve-composition analysis, not an issuer financial screen or official Sharia classification; the examination does not provide a scholar-approved prohibited-income allocation.

Purification

The reserve examination does not prescribe a purification percentage or allocate Circle's reserve income by Sharia category; the disclosed composition is evidence for scholar review only.

Inputs, assumptions and primary sources
  • Circle's May 29, 2026 reserve report shows 75,885.403148 million USDC in circulation and 75,961.621872 million of reserve assets.
  • The reserve assets include 22,061.994431 million of U.S. Treasury securities and 45,171.000000 million of Treasury repurchase agreements, recorded together as 67,232.994431 million of interest-bearing or interest-linked instruments; cash held in the reserve fund and regulated financial institutions totals 11,797.954524 million before timing adjustments.
  • The reserve report confirms coverage but does not allocate Circle's profit or reserve income into a scholar-approved prohibited-income numerator.
  • The reserve/liability denominator is not an issuer-equity balance sheet; USDC's currency-token contract, redemption, custody and reserve economics remain qualitatively incomplete.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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