Is Tether (USDT) Halal or Haram?
Last screened: April 2026 · Reviewed against AAOIFI Shariah Standards
⚠️
DOUBTFUL — Tether
Fiat-backed stablecoin — reserve transparency concerns and yield products raise questions
Screening Criteria
- Stable value for transactions ✅
- No gambling mechanism ✅
- Reserve backed by US Treasuries (yield-bearing) ⚠️
- Tether earns interest on reserves ⚠️
- Audit transparency concerns ⚠️
Scholar’s Note
USDT as a simple transaction medium is used by many Muslims. However, Tether Inc. earns interest on US Treasury reserves — making the token's backing partially interest-derived. Most scholars say using USDT for transactions only (not holding) is acceptable. Avoid USDT yield products entirely.
⚠ This screening is for educational purposes only. For a binding religious ruling (fatwa), please consult a qualified Islamic scholar (mufti) familiar with your specific circumstances.
Our Screening Methodology
We screen every cryptocurrency against 5 criteria derived from AAOIFI Shariah Standards and scholarly consensus:
- ✓ No Riba — No interest-bearing mechanisms or yield that resembles usury
- ✓ No Gharar — No excessive uncertainty or deception in the token’s structure
- ✓ No Maysir — No gambling mechanics or purely speculative mechanisms
- ✓ Genuine Utility — The asset serves a real economic or technological purpose
- ✓ Halal Business — The underlying project does not facilitate haram activities
Screen Your Full Portfolio
Check all your coins at once. Free forever, no signup required.
Screen Tether in Our Tool →
✓ Free · ✓ No credit card · ✓ Instant results
Related DOUBTFUL Coins