Is USD Coin (USDC) Halal?

While generally halal, we think a cryptocurrency can be haram if it is primarily used for a haram purpose.

So we’ll examine this cryptocurrency’s utility to determine our level of comfort investing in it.

What is USD Coin and what is it used for?

USD Coin (known by its ticker USDC) is a stable value cryptocurrency (stablecoin) that is pegged to the U.S. dollar on a 1:1 basis

Every unit of this cryptocurrency in circulation is backed by $1 that is held in reserve.

The Centre consortium, which is behind this asset, says USDC is issued by regulated financial institutions.

Stable coins like USDC can be used for purchasing other cryptocurrencies, money transfers, and saving.

PIF Commentary:

Unlike its rival Tether (USDT), which has found itself embroiled in repeated investigations, USDC has never been accused of any wrongdoing.

Is USD Coin Halal?

We are comfortable investing in USD Coin from a halal perspective.

If you’d like to follow the PIF crypto portfolios to see which cryptos we like from an investment perspective, consider becoming a PIF member.

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