Is Wrapped Bitcoin (WBTC) Halal or Haram?

Screening Criteria

• Backed 1:1 by real Bitcoin ✅
• Centralized custody risk (BitGo) ⚠️
• Primary use case is DeFi lending/borrowing ⚠️
• Enables riba-based DeFi participation ⚠️
• The BTC backing itself is halal ✅

Scholar’s Note

WBTC is backed by real Bitcoin but primarily used in DeFi lending protocols. The wrapper itself is not inherently haram, but its primary use case — depositing into Aave, Compound, or similar lending protocols — is riba. Holding WBTC is classified as doubtful; using it in lending protocols is haram.

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