CoinStudy appreciates the detailed clarification and wants to give this questioner an honest and precise answer rather than a vague one. The clarifications genuinely help narrow the compliance question, and the questioner's own conduct is clean in the specific respects he describes. He is not participating in QSRT, not receiving reserve yield, and not seeking interest income. His profit source is the conversion ratio difference between QELT and QXMP. These clarifications are important and acknowledged.
However the compliance question has now become more precise rather than disappearing, and the honest answer requires engaging with it directly.
The QXMP Reserve Structure and CoinStudy's Stablecoin Framework
CoinStudy has analyzed thirteen dollar pegged stablecoins since its founding. The single most consistently applied compliance principle across all thirteen analyses is the Ecosystem Riba Exposure principle: when a stablecoin's reserve structure holds interest-bearing instruments, the stablecoin inherits a compliance concern from that reserve structure regardless of whether individual holders directly receive the interest income. This principle has produced Haram classifications for USDT, USDC, USAT, and every other T-Bill or money-market-backed stablecoin CoinStudy has assessed.
The questioner has now confirmed that QXMP's backing reserve is a GENIUS Act Liquid Reserve system that holds interest-bearing instruments generating yield. He confirms that this yield is split between QSRT holders and retention within the reserve to increase QXMP's liquidity and backing. This means QXMP's stability mechanism, specifically the strength and depth of its 1:1 redemption backing, is partially funded by interest income even though QXMP holders do not receive that interest as a direct payment.
This is the specific structure that CoinStudy's Ecosystem Riba Exposure principle addresses. The compliance concern is not that the questioner personally receives interest. The compliance concern is that QXMP as an instrument is backed and stabilized by a mechanism that incorporates interest-bearing instruments in its reserve. When a Muslim investor acquires QXMP and holds it pending sale, they hold an instrument whose value stability depends on an interest-funded backing mechanism.
The Chairman's conditional permissibility framework for T-Bill backed stablecoins permits using them as transient mediums of exchange for genuinely permissible commercial transactions with minimal holding periods. It does not extend to acquiring them as an investment vehicle to hold pending a profitable sale, which is the questioner's described intention.
Whether QXMP Is Different From Other T-Bill Backed Stablecoins
The questioner makes two arguments that deserve direct engagement. First, the underlying assets being tokenized include gold and minerals rather than only financial instruments. Second, the interest income is retained within the reserve to strengthen QXMP's backing rather than distributed to holders.
On the first point, the compliance question is about the GENIUS Act Liquid Reserve in which the capital settles after tokenization, not about the nature of the assets being tokenized. The questioner himself confirms that after tokenization the capital settles into the GENIUS Act Liquid Reserve system held in regulated custody. The GENIUS Act mandates that these reserves be held in US Treasury bills, bank deposits, or equivalent instruments. The real-world assets being tokenized become capital that then enters an interest-bearing reserve structure. The nature of the original assets does not change the compliance profile of the reserve structure they fund.
On the second point, the retention of interest income within the reserve to strengthen QXMP's backing rather than distributing it to holders is a structural detail that changes who receives the benefit of the interest income rather than whether interest income is present in the system. QXMP's redemption guarantee is partially backed by accumulated interest. A Muslim investor who acquires QXMP receives an instrument whose value stability is partially dependent on that accumulated interest. The benefit flows to the holder in the form of a more reliably redeemable stablecoin rather than as a direct payment.
The Conversion Ratio Gharar Concern
The questioner has confirmed that the QELT to QXMP conversion ratio may be determined at the project's discretion rather than being permanently fixed on-chain. This creates a genuine Gharar concern that is independent of the stablecoin reserve question. When the terms of a commercial exchange, specifically the ratio at which one asset converts to another, are subject to the counterparty's unilateral discretion rather than being defined in an audited smart contract, the commercial transaction lacks the certainty of terms that Islamic commercial law requires. The questioner cannot know at the time of his decision what ratio will be applied, which means he cannot fully assess the economic terms of the transaction he is entering. This Gharar concern would apply to the conversion mechanism regardless of QXMP's reserve structure.
CoinStudy's Assessment of the Specific Transaction
The questioner's specific transaction involves converting QELT, which CoinStudy classifies as Doubtful pending the ATKA/QSRT proceeds clarification discussed in the previous Q&A entry, into QXMP, which presents Ecosystem Riba Exposure concerns from its interest-bearing GENIUS Act Liquid Reserve backing, at a conversion ratio subject to project discretion rather than audited on-chain terms, for the purpose of selling at a cash profit.
CoinStudy cannot classify this specific transaction as permissible based on the structure as described. The two specific concerns are: QXMP's reserve structure creates Ecosystem Riba Exposure concerns under the same framework CoinStudy has applied consistently to every T-Bill backed stablecoin, and the discretionary conversion ratio creates Gharar concerns about the certainty of the exchange terms.
These concerns exist independently of the questioner's clean personal conduct regarding QSRT non-participation and yield non-receipt. The compliance question is about the instruments involved and the structure of the exchange rather than about the questioner's individual motivations or activities.
The Path to a Clearer Ruling
CoinStudy recommends that the questioner submit this specific transaction structure to a qualified Islamic scholar for a formal ruling. The specific questions that scholar should assess are whether QXMP's interest-funded backing reserve creates prohibited Ecosystem Riba Exposure for a holder who does not receive the interest directly, and whether the discretionary conversion ratio satisfies the certainty of terms requirement under the applicable Sarf or commodity exchange framework. CoinStudy will also submit this structure to Chairman Dr. Usman Quddus for his formal assessment and will update this page when his response arrives.
