The short answer
Coinbase is DOUBTFUL in ZakatInvest's qualitative classification, and its current financial presentation is a FAIL under the examined total-assets methods. An exchange or custody service for a permissible digital asset may be viewed as permissible, but Coinbase combines that activity with products and contracts whose Sharia treatment differs across schools and scholars.
This is a reproducible research screen, not a fatwa or investment recommendation. Readers should apply the principles of their school and consult a qualified scholar for a binding ruling.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
7,776.294 / 28,848.792
10,205.022 / 28,848.792
11,945.992 / 28,848.792
- Financial
- Fails
- Overall
- Fails
Debt is 26.96%, liquidity is 35.37% and receivables plus cash are 41.41%; liquidity and receivables plus cash exceed the examined FTSE total-assets limits. Gross non-compliant income is unavailable from the mixed filing line.
- Financial
- Fails
- Overall
- Fails
Debt is 26.96%, while liquidity is 35.37% and receivables plus cash are 41.41%, above the examined MSCI total-assets limits. This is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt is 26.96%, above the examined Malaysia SAC debt limit, and liquidity is 35.37%. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Coinbase operates a crypto-asset exchange, custody and financial-services platform. Brokerage and custody of a permissible digital asset may be viewed as permissible, but the company also facilitates derivatives, margin and institutional financing, staking and stablecoin services, prediction-market activity and trading in assets whose permissibility is disputed across schools and scholars.
Limitation: The filing does not allocate revenue by token, customer use, derivative, lending arrangement, prediction-market contract or screened activity into a universal prohibited-revenue numerator; no blanket halal or haram percentage is invented.
Purification
Coinbase reports a mixed corporate interest-and-other income line but does not prescribe a scholar-approved purification percentage. Readers should follow the qualified scholar or methodology they use rather than applying an invented fixed rate.
Inputs, assumptions and primary sources
- Inputs use Coinbase's March 31, 2026 Form 10-Q; amounts are USD millions converted from the filing's USD-thousands presentation.
- Interest-bearing debt uses current long-term debt of $1,271.056 million, short-term borrowings of $564.610 million and long-term debt of $5,940.628 million. Lease liabilities are not entered as conventional debt.
- Cash uses the reported $10,205.022 million cash and cash equivalents balance. Customer custodial funds, restricted cash, operating crypto and collateral crypto are not added to company liquidity.
- Marketable investments of $232.980 million are primarily equity investments in the filing and are not entered as interest-bearing securities; strategic investments are also excluded.
- Receivables use $296.237 million of accounts receivable plus $1,444.733 million of loan receivables. Customer custodial receivables and crypto assets are not treated as company receivables.
- Total revenue is $1,412.982 million for the quarter. Corporate interest and other income is a mixed line that includes interest and stablecoin-balance income, so no unsupported gross-interest percentage is estimated.
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.
Current quantitative screen
The calculations use Coinbase's official filing at the SEC (Q1 2026 Form 10-Q). Amounts are in USD millions and use total assets as the denominator.
- Interest-bearing debt / assets: 26.96%, including current long-term debt, short-term borrowings and long-term debt; operating leases are not entered as conventional debt.
- Cash and cash equivalents / assets: 35.37%. Customer custodial funds, restricted cash and crypto collateral are not added to company liquidity.
- Receivables plus cash / assets: 41.41%, using accounts receivable and loan receivables plus reported cash.
- Non-compliant income / revenue: not calculated. Corporate interest and other income is a mixed line, so the filing does not support a precise gross-interest percentage without an unsupported allocation.
The examined FTSE, MSCI and Malaysia total-assets calculations fail on liquidity, receivables-plus-cash and/or debt treatment. Market-cap denominator methods are not calculated because ZakatInvest does not store a licensed, reproducible historical market-cap series.
What Coinbase does
Coinbase operates a crypto-asset exchange, custody and financial-services platform. Its first-quarter filing reports transaction revenue, subscription and services revenue, blockchain rewards, stablecoin revenue and other activities. The company also discloses crypto assets held for operations, investment and collateral, as well as loan receivables and short-term borrowings denominated in crypto or payment stablecoins.
Revenue is not allocated by token, customer use, derivative, lending arrangement, prediction-market contract or other screened activity into a universal prohibited-revenue numerator. That limitation is why the business assessment remains qualitative rather than pretending to produce a precise haram-revenue percentage.
Interest, stablecoins and purification
Coinbase reports a corporate interest-and-other income line that includes interest and stablecoin-balance income, but the examined filing does not isolate every component into a scholar-approved gross-interest numerator. We therefore do not repeat an unsupported claim that a fixed share of revenue is interest, and we do not prescribe a universal purification rate.
A reader who follows a methodology requiring purification should use that methodology's treatment and the underlying filing detail. The record should be revisited when Coinbase provides clearer activity-level allocation or files a newer statement.
Qualitative Sharia considerations
- Digital-asset permissibility: schools and scholars differ on which tokens represent permissible property, currency or utility and which are impermissibly speculative.
- Derivatives and margin: leveraged, short and derivative products can raise riba, gharar and maysir concerns beyond ordinary spot brokerage.
- Lending and stablecoins: institutional financing, crypto borrowings and stablecoin arrangements require contract-level review rather than a broad label.
- Prediction markets: event contracts and similar products can resemble wagering, depending on their structure and the scholar's analysis.
- Custody and listings: asset selection, staking, custody, decentralized-exchange activity and customer use are not universally screened in the filing.
The doubtful verdict
Coinbase remains DOUBTFUL in ZakatInvest's qualitative classification, with a current financial FAIL because cash is 35.37% of assets, receivables plus cash are 41.41% and debt is 26.96%. This is not an official index membership or fatwa. Revisit the record when Coinbase files new statements or materially changes its exchange, custody, lending, stablecoin, derivatives or prediction-market activity.
Use the quantitative screen alongside your school's principles and consult a qualified scholar before investing.
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