StablecoinsJul 8, 2026
Is using USDT as a medium of exchange permissible even though its structure involves interest-bearing reserves?
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Question context
A community member asked whether the structural Haram classification of USDT prevents them from using it as a payment tool for halal transactions.
CoinStudy's answer
Research opinion from the CoinStudy Sharia team. Not a fatwa.
CoinStudy classifies USDT as Haram at the structural level because its reserves consist of US Treasury bills, bank deposits, and money market instruments that generate interest income. However our Shariah Board Chairman Dr. Mufti Usman Quddus ruled: "Its use as a digital currency is correct. If used in halal means the profit will be halal, and if used in haram dealings it will be haram." The structure is Haram. Using it purely as a medium of exchange in halal transactions is permissible for that individual. These are two separate questions with two separate answers. Consult a qualified Islamic scholar for personal guidance.