Are xStocks of halal companies permissible to buy and hold? What about providing liquidity and referrals?
Question context
CoinStudy's answer
Research opinion from the CoinStudy Sharia team. Not a fatwa.
Our Shariah Board Chairman ruled on all four scenarios. Buying and holding xStocks of halal companies is permissible (Mubah). Liquidity provision is permissible if given for partnership and trade and if it is known your liquidity will be used in a permissible place. Standard DeFi lending of xStocks is not permissible since taking profit on a loan is Haram. Referral commission depends on the product. Commission on halal product is halal and on haram product is haram. Creating fake referrals using fake IDs is Haram due to deception. The underlying company must independently pass AAOIFI Islamic equity screening before any xStock of that company is considered permissible.
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