Is Litecoin (LTC) halal?
The six conditions are met for a spot purchase.
Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/05/2026 and not reviewed by a human.
The asset
Native currency of the Litecoin network (Scrypt proof of work), a Bitcoin derivative created in 2011 Issuer: No issuer: open-source network; the Litecoin Foundation, a nonprofit organization (Singapore and United States), promotes its development.
LTC is used to make payments on the Litecoin network, created in late 2011 by Charlie Lee. The supply is capped at 84 million LTC; the block reward is 6.25 LTC and will drop to 3.125 LTC around July 2027. As of October 5, 2026 (14:51 UTC), CoinGecko reports 77.68 million LTC in circulation, a price of €63.62 and a market capitalization of €4.94 billion (24th rank).
Why this verdict
- Permissible purpose : met. LTC serves as a payment currency on its own network; no gambling, interest-bearing loan or impermissible content is found.
- « Litecoin is a peer-to-peer decentralized digital currency (cryptocurrency) which can be used to make quick transactions worldwide, with almost no fees. » Litecoin Foundation (litecoin.com) (2026-10-05)
- « LTC can be used to pay for goods and services on the Litecoin Network » Grayscale Litecoin Trust (rapport 10-K, SEC) (2026-09-03)
- No riba : met. Holding pays no yield: the block reward (6.25 LTC) goes to the miner, and transaction fees will replace it after the last LTC is issued. No native lending or staking mechanism appears in the sources read.
- « Currently, the fixed reward for solving a new block is 6.25 LTC per block » Grayscale Litecoin Trust (rapport 10-K, SEC) (2026-09-03)
- « miners will only have transaction fees to incentivize them » Grayscale Litecoin Trust (rapport 10-K, SEC) (2026-09-03)
- No gambling : met. The spot purchase is of a token recorded on a public ledger and transferable between addresses; it is not a contract on a price difference.
- « The Litecoin Network allows people to exchange tokens of value, called LTC, which are recorded on a public transaction ledger » Grayscale Litecoin Trust (rapport 10-K, SEC) (2026-09-03)
- No excessive gharar : met. The issuance rules are published: cap of 84 million LTC, reward halved every 840,000 blocks, next halving around July 2027. In March 2026, a flaw in the confidentiality extension block (MWEB) allowed excess LTC to be created; they were recovered after a fix.
- « The Litecoin Network is structured to allow a maximum of 84 million LTC to be created » Grayscale Litecoin Trust (rapport 10-K, SEC) (2026-09-03)
- « Block subsidy drops from 6.25 LTC to 3.125 LTC at block 3,360,000 » Litecoin.watch (2026-10-05)
- Real ownership : met. LTC can be withdrawn to a personal wallet address; the full node software is public and open.
- « allow the Trust or Sponsor to withdraw LTC from the Trust's Digital Asset Account to a public blockchain address the Trust or Sponsor controls » Grayscale Litecoin Trust (rapport 10-K, SEC) (2026-09-03)
- « Mathematics secures the network and empowers individuals to control their own finances. » Litecoin Foundation (litecoin.com) (2026-10-05)
- No fraud or manipulation : met. No sanction, regulator warning or manipulation targeting LTC was found; the creator is identified and the richest address holds 3.05% of the coins. The exploitation of the MWEB flaw in 2026 is a resolved technical incident, not a deception of buyers.
- « created in late 2011 by Charlie Lee » Grayscale Litecoin Trust (rapport 10-K, SEC) (2026-09-03)
- « Balance: 2,412,949 LTC ($171,623,120) Ins: 171 Outs: 107 2,412,949 LTC ($171,623,120) 3.05% » BitInfoCharts (2026-10-05)
- Réseau ouvert et généraliste : met. un outil neutre
- « the infrastructure of which is collectively maintained by a decentralized user base » Grayscale Litecoin Trust (rapport 10-K, SEC) (2026-09-03)
- « Litecoin is an open-source software project released under the MIT/X11 license. » Litecoin Foundation (litecoin.com) (2026-10-05)
Tolerance case
T1. LTC is the native currency of an open network, maintained by decentralized users and whose software is under the MIT license; no issuer earns revenue from holding (T2 case not applicable). The network includes an optional confidentiality layer (MWEB) and, since June 2025, a smart contract layer 2 (LitVM).
Opinions found during the research
- Sharlife (Malaysia), screening site; no scholar named on the page : Statut « Passed » : « As of now, the projects provided by Litecoin appear to be in accordance with Shariah principles. » Dernier filtrage : T3 2023. (2023-09) source
- CryptoUmmah (screening site; page written by Thanvir, reviewed by Imam Omar Siddiqi) : “Halal · Recommended with Purification”, compliance score 77.8/100. (2026-07-13) source
- ShariaQuant (AI-assisted screening site; the page states that no scholar reviewed this verdict and that it is not a fatwa) : Status “Halal”: payment network without smart contracts or native yield, compliance score 95/100. (2026-07-24) source
- Islamic Finance Guru (editorial site, not a scholar; crypto table) : “Halal? Yes” for holding, “Similar analysis to BTC”; page date not displayed. (2026-10-05) source
Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.
What could not be verified
- litecoin.org: page empty when read without script; the official facts come from litecoin.com, the GitHub repository and Grayscale's 10-K report.
- LTC delistings by South Korean platforms in 2022 after MWEB arrived: found in search summaries, not re-read at the source. Share of LTC placed in MWEB: unknown.
- Regulation (EU) 2024/1624: text not read (EUR-Lex protected by an anti-bot check); the application of its Article 79 to MWEB is not established. Availability of LTC on MiCA-licensed platforms accessible from France: not verified.
- SEC/CFTC interpretation of March 17, 2026: text not read; Grayscale's 10-K mentions 18 assets, Pillsbury lists 16. Publication date of the Canary page not displayed (date used: date of consultation).
- Owner of the largest addresses: not identified; the share held by platforms is unknown. Litecoin Foundation financial statements not read.
- Sources more than eighteen months old: Sharlife screening (2023). IFG page with no displayed date. No opinion from a recognized body (AAOIFI, fiqh academy) naming LTC was found.
Sources read
- Litecoin Foundation (litecoin.com)
- Grayscale Litecoin Trust (rapport 10-K, SEC)
- Litecoin.watch
- CoinGecko (API, valeurs en euros)
- BitInfoCharts
- AMF (liste noire, recherche « litecoin »)
- OICV (I-SCAN)
- SEC and CFTC (joint interpretation No. 33-11412), via Pillsbury Winthrop Shaw Pittman
- Canary Capital
- AMF
- ESMA (registre MiCA, fichier OTHER.csv)
- Cryptoticker (article of September 24, 2026)
- Litecoin Foundation (litecoin.com)
- Sharlife
- CryptoUmmah
- ShariaQuant
- Islamic Finance Guru
Other cryptos analyzed
- Uniswap Questionable
- Jupiter Prohibited
- Hyperliquid Prohibited
- Mantle Questionable
- Compound Prohibited
- Polkadot Permitted
- Aster Prohibited
- Cronos Questionable
General information: neither investment advice nor a fatwa. Verdict calculated by published rules, from financial statements read automatically and not reviewed by a human. Read the methodology