USDC
USD Coin
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.
- 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.
- Financial
- Not calculated
- Overall
- Incomplete
No issuer-equity balance sheet or revenue denominator is available; reserve composition and currency-token treatment remain unresolved.
- Financial
- Not calculated
- Overall
- Incomplete
Issuer financial ratios do not apply; Treasury-backed reserve economics require separate scholar review.
- 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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