Is Precious Metals USD halal?
Precious Metals USD is a stablecoin designed to keep a steady value against a currency such as the US dollar. It is issued as a token on Ethereum.
Precious Metals USD does not clear every threshold of our screen. Its weakest point is the Riba-free criterion (50 out of 100). A stablecoin. Many issuers earn interest on the reserves that back it, and scholars differ on how that affects holders.
Shariah screen result
mean of the five criteria
A stablecoin. Many issuers earn interest on the reserves that back it, and scholars differ on how that affects holders.
Fairly small (market value about $56.3 million). Smaller markets move more easily.
Nothing in its public tags points to gambling-style mechanics.
Whether the backing is permissible depends on the specific assets.
Holding and sending a stable digital currency is a permissible use.
How this was made: we scored the coin's public category tags and market size against the same five criteria and thresholds we use in our reviewed screen. Nobody has yet read its whitepaper or checked its revenue. This is a screening result, not a fatwa. Scholars may reach different views, so check with a qualified scholar before relying on it.