SwissBorg

Is SwissBorg (BORG) Halal? A CoinStudy HCS Analysis

The question Muslim investors must answer before engaging with SwissBorg is not simply whether the platform allows crypto trading, which is a settled question across most scholarly opinion, but whether the platform’s earn product routes user funds through interest-bearing lending, whether BORG’s cashback and rank mechanics constitute a guaranteed return on capital, and whether any element of the platform’s yield architecture crosses into Riba or constitutes a prohibited exchange of money for more money over time. CoinStudy applies the full HCS framework to SwissBorg with all documented platform activity in view, drawing on the EarnPark independent review of 2026, Kiln’s public staking disclosure, SwissBorg’s own website, CoinMarketCap research, and the CoinTelegraph product description.

SwissBorg presents an unusual compliance profile for a Muslim investor. Its core exchange and trading infrastructure raises no independent Riba concern. Its BORG token mechanics, built around trading fee cashback, rank rewards, and governance participation, have documented non-Riba utility. However, its Earn product explicitly includes lending to DeFi protocols as one of its yield strategies alongside legitimate proof-of-stake staking, and the platform does not disaggregate these activities at the point of investor participation. That commingling is the central compliance question this analysis addresses.

Quick Verdict: SwissBorg (BORG) Scores 73/100 : Halal With Concerns ✅⚠️

BORG passes all five Layer 1 red-line tests under CoinStudy’s documented HCS screening. No protocol-level Riba is embedded in the token’s own design. The exchange aggregation model, the fee cashback system, and proof-of-stake ETH staking via Kiln are all legitimate economic activities that do not raise a Riba concern at the point of the token itself. The 73/100 Layer 2 score reflects three sustained concerns that prevent a higher classification. First, the Earn product commingles DeFi lending strategies with staking strategies under a single product without requiring the investor to select only the permissible component, and the EarnPark independent review of 2026 confirms that lending on established DeFi protocols is one of the named underlying activities. Second, the BORG rank system makes the highest yield multipliers conditional on locking BORG, creating a structure where locked capital earns a boosted return linked to platform activity, and the permissibility of this boosted return requires scholarly assessment of whether the locked BORG functions as a service stake or as capital placed for a return. Third, the Solana custody incident of September 2025, in which approximately $41 million was stolen through a compromised Kiln access token and only approximately $4 million in compensation was disbursed by December 2025, raises custodial transparency concerns that affect the Transparency and Governance score.

What Is SwissBorg (BORG) in 2026?

SwissBorg was founded in Lausanne, Switzerland, and describes itself on its official website as Europe’s leading mobile app for buying, selling, trading, and earning yield on crypto, operating in 47 countries. The company’s core infrastructure is a Smart Engine that aggregates price liquidity from twelve centralised and decentralised exchanges to route trades toward the best available execution price, according to SwissBorg’s own website reviewed October 2026.

The BORG token, which was previously called CHSB before a rebranding and migration to a new Ethereum contract address, is the native utility token of the SwissBorg ecosystem. According to CoinMarketCap research retrieved October 25, 2026, BORG has a circulating supply of approximately 982.25 million tokens, a maximum supply of approximately 982.6 million tokens, a current price of approximately $0.1609, a market capitalisation of approximately $158 million, and an all-time high of $1.65 reached on May 4, 2021. The token is available on Ethereum through Uniswap, on Solana through Orca and Raydium, and on the SwissBorg application directly, with HitBTC listed as a centralised exchange option per CoinMarketCap research.

BORG’s documented functions within the platform are: fee cashback, where SwissBorg purchases BORG on the open market and distributes it to users as a cashback on trading fees; rank unlocking, where locking BORG raises a user’s SwissBorg Rank, granting higher cashback percentages, boosted Earn yields, access to Alpha pre-sale deals, and governance voting weight; governance participation, where BORG holders vote on platform decisions; and ecosystem access, where BORG unlocks certain product features and investment opportunities.

SwissBorg disclosed in June 2026 that it is fully MiCA compliant, with the MiCA licence held by BlockNodes SAS, a French entity within the SwissBorg group structure, per the independent EarnPark review published 2026. The platform publishes monthly Merkle-tree proofs of liabilities, which allow users to verify their own balance inclusion, per the same review. No asset-side reserve disclosure or coverage-ratio report has been published.

The Core Mechanism: Why BORG’s Compliance Question Centres on the Earn Product

CoinStudy has assessed multiple crypto wealth management platforms, including analyses of yield-bearing tokens from the DeFi and CeFi categories. The compliance question for a hybrid CeFi/DeFi platform like SwissBorg is not whether exchange trading is permissible, which it is when the underlying assets pass Layer 1 screening, but whether the earn product and its specific yield strategies route user funds through Riba-generating mechanisms.

SwissBorg’s Earn product, per the EarnPark independent review of 2026, covers more than 30 assets and offers strategies labeled by risk tier from low to high. The underlying activities disclosed include staking, lending on established DeFi protocols, liquidity provision, and at the high-risk end, leveraged staking, which borrows against a staked position to amplify returns. The 2026 review names Kiln as a third-party staking provider. Proof-of-stake validation rewards, where the investor’s assets secure a blockchain network and the validator receives network-issued rewards, are not Riba under the scholarly consensus CoinStudy follows: the income arises from a service performed, not from a loan relationship. However, lending on DeFi protocols, where the investor’s capital is deployed to a borrower who pays interest, is Riba regardless of whether the mechanism is described as decentralised or automated.

The compliance risk for BORG investors in the Earn product is that SwissBorg does not require investors to opt into only the staking or liquidity provision strategies and out of the lending strategies. The strategies are offered as a product selection by risk tier, not by underlying mechanism or Shariah compliance. A Muslim investor who enters the low-risk tier and receives yield from an unnamed DeFi lending protocol has participated in a Riba transaction, even if they did not intend to.

Islamic Finance Analysis

Financial Exposure Risk: 14/25

BORG’s financial exposure to Riba-generating activity exists at the Earn product level rather than at the token’s protocol level. The exchange aggregation engine, the fee cashback mechanism, and proof-of-stake staking via Kiln are not Riba-generating. However, the EarnPark review of 2026 confirms that lending on established DeFi protocols is one of the named underlying Earn strategies. Because the product does not require investors to identify and avoid lending-based strategies, Muslim investors using Earn without filtering by strategy type are exposed to Riba at the product level. The score reflects that the Riba exposure is real and documented but is located in an optional product rather than in the core exchange or token mechanics. A Muslim investor who holds BORG for cashback, governance, and Alpha access without using the Earn product is not exposed to this risk through the token itself.

The September 2025 Kiln incident, in which approximately $41 million in Solana was stolen through a compromised access token at the third-party staking provider, created a material financial loss to SwissBorg users. The approximately $4 million compensation disbursed by December 2025 covered approximately 10 percent of the loss, per the EarnPark review. Custodial risk at this scale is a relevant financial exposure concern for investors in any SwissBorg product that relies on third-party infrastructure.

Gharar: 11/15

The core exchange function has defined inputs and outputs: a user submits a trade, the Smart Engine executes at the best available aggregated price, and the fee is transparent. Earn yield rates are displayed as the average return over the prior 30 days and are re-optimised daily, per the EarnPark review. This backward-looking variable rate is not itself Gharar in the classical sense: the investor knows the rate may change and the product discloses this. Deductions are applied for the following. The underlying protocols generating the lending component of Earn yield are not named in reviewed evidence, which means the investor cannot independently verify what activity their capital is funding. The Solana theft of September 2025 illustrated that third-party custody infrastructure introduced contractual risks not fully disclosed to investors in advance. SwissBorg publishes liability proofs but no asset-side reserve disclosure, meaning investors cannot independently confirm that deposited assets are fully backed. The governance voting weight mechanics and Alpha deal access terms are not fully documented in the reviewed sources.

Maysir: 14/15

No gambling or wagering mechanism has been identified in the SwissBorg platform’s documented functions. Trading on an aggregated exchange at a disclosed fee is not Maysir. Earning cashback in BORG on trades is not Maysir. Participating in governance is not Maysir. The platform does not offer derivatives, perpetual contracts, or prediction markets. A minor deduction is applied because the leveraged staking strategy available in the high-risk Earn tier, where assets are borrowed against a staked position, introduces a capital-at-risk amplification mechanism that individual scholars may view differently when the underlying position involves borrowed capital. CoinStudy does not classify this as Maysir but notes the scholarly question.

Underlying Business Activity: 12/15

SwissBorg’s primary business activity is exchange aggregation and wealth management services. Exchange aggregation, routing trades to find the best execution price for a service fee, is a legitimate service-based business activity. Trading fee collection as a service fee is not Riba. The fee cashback mechanism, where SwissBorg purchases BORG on the open market and distributes it to users, is a marketing and loyalty mechanism rather than a financial return on deposited capital. Deductions are applied for two reasons. The Earn product includes DeFi lending as one of its strategy categories, which means a portion of the platform’s activity and revenue is generated from interest-bearing lending. SwissBorg does not disclose what proportion of its Earn product revenue comes from lending versus staking versus liquidity provision. Additionally, the Alpha pre-sale product, which offers early access to Web3 project token sales, requires individual Islamic assessment of each underlying project.

Utility and Real Use: 8/10

BORG has confirmed, documented utility in the SwissBorg ecosystem. Trading fee cashback is a real and live use case: SwissBorg purchases BORG on the open market to fund cashback, creating genuine buy pressure and a real reward mechanism. Rank elevation through BORG locking is a real platform function with confirmed access benefits. Governance voting is documented. The Alpha deal access function, which unlocks early-stage investment opportunities, is a real utility for qualifying users. The token’s utility is confirmed by its active use within a regulated platform operating in 47 countries with MiCA compliance established in March 2026, per the EarnPark review. A deduction is applied because BORG’s utility multipliers, including the highest cashback rates and boosted Earn yields, require holding significant quantities of BORG. At Platinum rank, the 2x yield multiplier requires approximately 30,000 BORG, valued at approximately $5,100 at September 2026 prices per the EarnPark review, which creates a capital threshold that concentrates the utility benefit in large holders.

Tokenomics Fairness: 7/10

The maximum supply of approximately 982.6 million BORG and the circulating supply of approximately 982.25 million BORG per CoinMarketCap research indicate that the supply is effectively fully distributed, with approximately 350,000 BORG remaining outside circulation. This is a positive signal: no large undistributed allocation remains that could be unlocked to dilute existing holders. The buy-back mechanism, where SwissBorg purchases BORG from the open market to fund cashback rewards, creates a genuine demand floor for the token tied to platform trading activity. Deductions are applied because the team allocation and its vesting schedule are not documented in the reviewed sources. The historical context of the token migration from CHSB to BORG and the terms of that migration, including whether any additional tokens were created or existing holders were fully accommodated, are not independently verified from primary documentation in reviewed sources. The rank-based yield multiplier system, where locked BORG earns boosted returns, creates an economic advantage for large holders over small ones that affects the fairness of the tokenomics model.

Transparency and Governance: 7/10

SwissBorg publishes monthly Merkle-tree proofs of liabilities, which is a meaningful transparency commitment that allows individual users to verify their own balance inclusion. The MiCA licence obtained by BlockNodes SAS in March 2026 provides a regulatory framework with defined governance, capital adequacy, cybersecurity, custody, and consumer protection requirements. Governance voting through BORG is documented as a platform function. Deductions are applied for four reasons. No asset-side reserve disclosure or coverage-ratio report has been published, per the EarnPark review, which means the liability proof is not matched by a public confirmation of what assets back those liabilities. The September 2025 Kiln incident, in which a third-party access token was compromised and $41 million stolen, exposed a gap in third-party vendor risk disclosure that was not communicated to investors in advance as a known risk. The compensation of approximately $4 million against a $41 million loss, with full recovery described as a goal rather than a commitment, is a transparency concern about the platform’s capacity to stand behind custodial failures. The underlying DeFi protocols used in the Earn lending strategies are not publicly named in any reviewed source.

Applying AAOIFI Principles to SwissBorg (BORG)

CoinStudy applies general Islamic finance principles informed by AAOIFI standards as a reference framework. This does not constitute a claim that AAOIFI has reviewed or endorsed any finding in this analysis, nor that any AAOIFI standard directly governs the classification of a CeFi wealth management platform token. CoinStudy uses the “principles relevant to” framing throughout.

The principles relevant to BORG’s exchange aggregation activity are those governing Sarf, the exchange of currencies, and service-based fee structures. AAOIFI’s treatment of financial intermediation confirms that earning a fee for routing a transaction to its best execution is a legitimate Ujrah-based service, provided the fee is disclosed and the underlying assets exchanged are themselves permissible.

The principles relevant to the Earn product’s DeFi lending component are those governing Qard and Riba. AAOIFI’s treatment of loan-based Riba confirms that any predetermined increment returned to a capital provider above the principal of a loan, regardless of the label applied to the mechanism or the technology through which it executes, constitutes Riba al-nasi’ah. Where Earn strategies route capital to DeFi lending protocols from which the depositor receives interest, the principles relevant to AAOIFI’s Riba prohibition apply.

The principles relevant to the proof-of-stake staking component are those governing Ijarah and Musharakah in network validation contexts. CoinStudy treats validator staking rewards, where the staked asset secures a network and the validator earns network-issued rewards for that service, as closer to service compensation than to Riba, consistent with the scholarly treatment CoinStudy follows. CoinStudy notes that this remains an area of active scholarly discussion and forwards the specific structure of SwissBorg’s Kiln-based staking to the Chairman for confirmation.

The principles relevant to the BORG rank and boosted yield system are those governing the distinction between a legitimate loyalty reward and a predetermined return on locked capital. If the boosted yield is a marketing incentive tied to platform participation rather than a capital-based return, it falls outside the Riba prohibition. If it functions as a guaranteed or semi-guaranteed return on locked capital, it raises concerns under Sadd al-Dhara’i, the precautionary blocking of otherwise permissible acts that lead to prohibited outcomes. CoinStudy treats this as an unresolved scholarly question and forwards it to the Chairman.

Anticipated Scholarly Questions: Critical Islamic Finance Review

Question 1. The Earn product includes both staking and DeFi lending. If a Muslim investor only participates in a staking-based strategy and never touches a lending strategy, is there any Riba concern for that specific use?

CoinStudy’s response: If a Muslim investor can identify, select, and verify that their chosen Earn strategy is exclusively backed by proof-of-stake validation rewards and contains no DeFi lending component, and if SwissBorg provides sufficient documentation to verify this, then that specific strategy would not raise a Riba concern under CoinStudy’s framework. The practical difficulty is that SwissBorg does not name the underlying DeFi protocols in any reviewed source, and the strategy labeling is by risk tier rather than by underlying mechanism. Without that granular disclosure, a Muslim investor cannot currently confirm that a chosen strategy is free from lending. This is the core compliance gap in SwissBorg’s Earn product for Muslim investors, and CoinStudy forwards it to the Chairman as a question of whether the investor’s inability to segregate lending from staking at the product level creates constructive participation in Riba.

Question 2. The BORG cashback mechanism works by SwissBorg buying BORG on the open market and distributing it to traders. Is there any concern that this constitutes the platform paying more back than it received in fees, which could resemble Riba al-fadl in monetary terms?

CoinStudy’s response: No. Riba al-fadl in its classical application concerns the unequal spot exchange of specified ribawi commodities of the same kind. The SwissBorg cashback mechanism involves a service fee paid by the user in exchange for a trade execution service, and a separate marketing benefit distributed by the platform in a different asset, BORG, purchased on the open market. The fee and the cashback are not a bilateral exchange of the same commodity in unequal quantities. The mechanism is closer in structure to a commercial rebate or loyalty reward, which does not raise a Riba al-fadl concern. CoinStudy notes this conclusion and does not forward it as an unresolved question.

Question 3. Does locking BORG to earn a boosted yield multiplier constitute placing capital for a return, which would raise a Riba concern?

CoinStudy’s response: This is the most nuanced question in this analysis. The argument that locking BORG for boosted yield is not Riba rests on the characterisation of the boost as a platform loyalty incentive: the user is rewarded for demonstrating commitment to the platform by locking capital, and the boost is a marketing cost to the platform, not a contractual increment on a loan. The argument that it raises a concern rests on the observation that a user locks capital of known value and receives, as a direct consequence of that locking, a boosted percentage return on separately deposited Earn capital, creating a structure in which locked capital produces a return. CoinStudy does not resolve this within the HCS framework and forwards it to the Chairman for ruling. Until the Chairman rules, CoinStudy classifies the rank-based boosted yield as requiring individual scholarly assessment.

Question 4. The Solana theft of September 2025 suggests that user assets were held in third-party custody and were lost due to a vendor compromise. Does this raise any question of Amanah or Wadiah breach that affects the permissibility of using SwissBorg as a custodian?

CoinStudy’s response: The custodial failure in September 2025 is a financial risk and regulatory governance concern rather than an independent Shariah concern about the permissibility of the platform. An Amanah or Wadiah custodian is obligated to exercise reasonable care over deposited assets. A third-party vendor access token compromise is a custody governance failure. Whether SwissBorg’s failure to fully compensate affected users within a reasonable time, offering approximately $4 million against $41 million in losses per the EarnPark review, constitutes a breach of its custodial obligation is a regulatory and contractual question. CoinStudy notes this as a governance concern that affects the transparency score and recommends that Muslim investors factor the custodial risk profile into their decision, but does not classify it as a Shariah prohibition on its own.

Question 5. SwissBorg operates under MiCA regulation as of March 2026. Does regulatory compliance in Europe affect the Shariah compliance assessment?

CoinStudy’s response: Regulatory compliance and Shariah compliance operate on separate tracks. MiCA compliance confirms that SwissBorg meets European regulatory standards for governance, capital adequacy, cybersecurity, custody, and consumer protection. It does not address the Islamic finance questions of whether the Earn lending strategies are Riba, whether the rank boosted yield structure is permissible, or whether the platform’s business model satisfies the HCS framework. CoinStudy applies the HCS independently of regulatory status.

Question 6. The underlying DeFi protocols used in SwissBorg’s Earn lending strategies are not publicly disclosed. Does deploying user capital to unnamed protocols constitute prohibited Gharar?

CoinStudy’s response: Classical Gharar concerns arise when the subject matter of a contract is unknown or uncertain in a manner that creates a material risk of dispute or injustice. The non-disclosure of underlying lending protocols does not by itself constitute classical Gharar in the contractual relationship between the investor and SwissBorg, because the investor knows they are entering a variable-yield product. However, the non-disclosure of underlying protocols is a transparency gap that prevents the investor from verifying whether those protocols are themselves Shariah-compliant, and it creates what CoinStudy treats as a Gharar-adjacent uncertainty about the nature of the activity being funded. CoinStudy applies this as a Gharar deduction rather than a Layer 1 Gharar red-line finding, consistent with the HCS framework’s treatment of transparency gaps.

CoinStudy HCS Screening Results

Layer 1: Sharia Red Line Screening

The following findings reflect CoinStudy’s assessment under the documented HCS operational framework as of October 25, 2026. Layer 1 findings reflect whether a red-line concern has been identified or not identified in reviewed evidence. These are provisional and pending Shariah Board Chairman review.

Riba: No red-line concern at the token or exchange protocol level ✅

BORG itself does not embed an interest-bearing mechanism. The exchange aggregation model earns service fees. The cashback mechanism distributes open-market purchased BORG. Proof-of-stake staking via Kiln is not a loan relationship. The DeFi lending component of the Earn product is a red-line concern at the product level for investors who use that specific product, and CoinStudy classifies participation in lending-based Earn strategies as not permissible. However, the token itself does not carry a protocol-level Riba red line.

Gambling (Maysir): No red-line concern identified ✅

No wagering, gambling, or chance-based reward mechanism identified at the platform or token level.

Haram Industry: No red-line concern identified ✅

SwissBorg’s primary business is exchange aggregation and wealth management. The inclusion of DeFi lending in the Earn product is a concern at the product level, addressed in the underlying business activity and financial exposure dimensions, but does not constitute a haram industry classification for the platform as a whole.

Guaranteed Interest: No red-line concern established from reviewed evidence ✅

The Earn yield rates are disclosed as backward-looking 30-day averages that are re-optimised daily, per the EarnPark review. They are not contractually guaranteed returns. A quoted yield rate is not a guarantee. This red line is not established from reviewed evidence.

Synthetic Interest Products: No red-line concern identified ✅

BORG is not a synthetic interest product. No synthetic interest mechanism has been identified at the token or exchange level.

Layer 2: HCS Score Breakdown

Financial Exposure Risk: 14/25
Documented DeFi lending exposure in the Earn product, undisclosed protocol names, Solana custody incident.

Gharar: 11/15
Variable yield with disclosed methodology passes. Deductions for undisclosed underlying lending protocols, asset-side reserve gap, third-party custody risk not pre-disclosed.

Maysir: 14/15
No gambling mechanism. Minor deduction for leveraged staking strategy scholarly question.

Underlying Business Activity: 12/15
Exchange aggregation and service-fee model are legitimate. Deductions for DeFi lending component and undisclosed revenue split between permissible and impermissible Earn strategies.

Utility and Real Use: 8/10
Confirmed live utility across cashback, rank, governance, and Alpha access. Deduction for capital-threshold concentration of utility benefits.

Tokenomics Fairness: 7/10
Near-fully distributed supply and buy-back mechanism are positive. Deductions for undocumented team allocation vesting and rank-based yield advantage for large holders.

Transparency and Governance: 7/10
Merkle-tree liability proofs and MiCA compliance are positive. Deductions for no asset-side reserve disclosure, undisclosed Earn protocol names, and the Kiln incident compensation gap.

Total HCS Score: 73/100 : Halal With Concerns ✅⚠️

What Is Permissible and What Is Haram

Permissible ✅

Holding BORG as a utility token for cashback rewards = Halal ✅

Trading crypto assets on the SwissBorg exchange aggregator for a disclosed service fee = Halal ✅

Using BORG to access governance voting on platform decisions = Halal ✅

Using BORG rank to unlock trading fee cashback benefits = Halal ✅

Earning yield through verified pure proof-of-stake ETH staking strategies via Kiln where no lending component is confirmed = Closer to permissible ✅ with caveat that individual verification of the strategy’s composition is required

Receiving BORG cashback on trades bought by SwissBorg on the open market = Halal ✅

Requires Individual Scholarly Assessment ⚠️

Using BORG rank locks to earn a boosted yield multiplier on the Earn product = Requires Chairman ruling on whether the rank boost constitutes a return on locked capital or a legitimate loyalty incentive ⚠️

Participating in Earn strategies labeled as low or medium risk without verifying the underlying mechanism as staking-only versus lending-inclusive = Not cleared ⚠️

Accessing Alpha pre-sale deals through BORG rank, where the permissibility depends on the individual project being accessed = Requires individual assessment of each project ⚠️

Liquidity provision strategies within the Earn product = Requires individual assessment of whether the liquidity pool involves prohibited pairs or fee-sharing structures ⚠️

Not Permissible ❌

Participating in SwissBorg Earn strategies confirmed to route capital to DeFi lending protocols where the depositor earns interest = Haram ❌

Participating in leveraged staking strategies within the Earn product, where capital is borrowed against a staked position = Haram ❌

Using SwissBorg to trade in tokens that fail their own independent HCS screening = Haram ❌

Shariah Board Chairman’s Assessment

This analysis is provisional pending review by Dr. Usman Quddus, PhD in Islamic Studies & Finance, Chair of the CoinStudy Shariah Board. The questions submitted for the Chairman’s ruling are:

One: Does a Muslim investor’s participation in a SwissBorg Earn strategy that commingles DeFi lending and staking in ways the investor cannot independently disaggregate constitute constructive participation in Riba, even if the investor did not intend to select a lending strategy?

Two: Does the BORG rank boosted yield multiplier, where locking a fixed quantity of BORG produces a higher percentage return on separately deposited Earn capital, constitute a capital-based return that falls under the Riba prohibition or a commercial loyalty incentive that does not?

Three: Is proof-of-stake ETH staking through a third-party validator provider, where the staked ETH secures the Ethereum network and the user earns network-issued rewards, confirmed as permissible under the Chairman’s ruling on staking income, or does the third-party custody arrangement through Kiln introduce an additional concern?

This page will be updated upon receipt of the Chairman’s ruling.

Final Verdict

SwissBorg (BORG) scores 73/100 and is provisionally classified as Halal With Concerns ✅⚠️

BORG passes all five Layer 1 red-line tests. The exchange aggregation model, the BORG cashback mechanism, and proof-of-stake staking via Kiln are legitimate economic activities. The token itself does not carry a protocol-level Riba concern.

The Halal With Concerns classification reflects three sustained issues. The Earn product commingles DeFi lending with permissible staking strategies without investor-level mechanism disclosure, which creates an unavoidable Riba exposure for Muslim investors who use the Earn product without independently verifying that their chosen strategy is staking-only. The rank-based boosted yield system requires scholarly assessment of whether locked BORG produces a return on capital. The Kiln custody incident of September 2025 and the partial compensation response raise custodial transparency concerns.

Muslim investors who hold BORG for cashback, governance, and Alpha access, who use the SwissBorg exchange aggregator for trading at disclosed fees, and who do not use the Earn product, or who use only verified staking-only Earn strategies pending platform disclosure improvements, are engaging with the permissible functions of the SwissBorg ecosystem. Muslim investors who participate in Earn strategies that include DeFi lending, or who participate in leveraged staking strategies, are engaging with impermissible product components regardless of their BORG holdings.

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Disclaimer: This analysis is published for educational and research purposes only. It is a provisional research opinion based on evidence reviewed as of October 25, 2026 and is not a fatwa, personal financial advice, or investment recommendation. CoinStudy applies the Halal Crypto Standard as an internal analytical framework informed by Islamic finance principles. Individual scholarly opinions may vary by madhab and by the specific circumstances of the investor. Readers are directed to consult a qualified Islamic scholar for guidance specific to their situation. CoinStudy does not issue personal fatwas or investment advice.