HaramCoinsIs Tether (USDT) halal? The stablecoin question
USDT aims to stay worth one US dollar. Simply holding a digital dollar to transact is close to holding cash — not the core issue.
The real question: the reserves
Tether backs the coin partly with interest-bearing instruments and earns riba on them. Scholars differ on whether merely using the token implicates the holder: some permit it as a payment tool, others avoid it out of precaution.
Alternatives
A gold-backed token like PAX Gold sidesteps the interest issue (though gold has its own exchange rules). See our Tether assessment and the stablecoins & riba guide.
This website is an educational resource, not a religious edict (fatwa). Qualified scholars differ on cryptocurrencies; the assessments here are based on widely-recognised principles of Islamic finance and are provided for learning only. Always consult a qualified scholar before making any decision, and remember that nothing here is financial advice.