Halal Bourse

Home › Crypto › World Liberty Financial USD

Is World Liberty Financial USD (USD1) halal?

Questionable

No condition fails, but 2 points remain to be verified or fall under a tolerated case.

Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/07/2026 and not reviewed by a human.

Open the evidence file

The asset

stablecoin Issuer: BitGo Bank & Trust, N.A., a national trust bank chartered and supervised by the OCC, issues and redeems USD1; the USD1 brand belongs to World Liberty Financial, Inc. and SC Financial Technologies, LLC (KPMG examination report, August 2026); World Liberty Financial states that it does not issue or hold USD1 itself.

Digital token pegged to the US dollar at 1 USD1 to 1 USD, backed according to the issuer by cash, government money market funds and other cash equivalents, launched in April 2025. About 4.20 billion tokens are in circulation as of August 31, 2026 according to KPMG's examination report, spread across Ethereum, BNB Smart Chain, Solana, Tron, Aptos, Tempo and Canton; CoinMarketCap counts about 4.40 billion tokens on October 7, 2026.

Why this verdict

  1. Permissible purpose : met. USD1 is used to hold and transfer dollars on several blockchains; World Liberty Financial intends it for value transfer and settlement. No main purpose of gambling, interest-bearing lending or impermissible content is found for the token itself (the issuer's investment of the reserves is addressed under c2).
  2. No riba : to be verified or tolerated case. The USD1 holder receives no interest under BitGo's terms, but the issuer may invest the reserves at interest and keeps the proceeds: as of August 31, 2026, $3.07 billion of the $4.20 billion in redemption assets are shares of a government money market fund and $1.13 billion are demand deposits (KPMG examination report); the share of the reserve proceeds going to BitGo or to World Liberty Financial is not published, and a secondary source writes that it goes to the issuer.
  3. No gambling : met. The spot purchase is of a token transferable on several public blockchains, redeemable 1 for 1 by eligible BitGo customers; it is not a bet on a price difference without purchase or delivery.
  4. No excessive gharar : met. Rights and reserves are documented: reserves held by BitGo, monthly reports and an examination by a Big Four firm (KPMG, report of September 24, 2026: management's assertion on tokens in circulation and redemption assets is fairly stated in all material respects). The direct redemption right is reserved for registered BitGo customers in good standing; other holders transfer the token but have no direct redemption right, and this right is contractual, with no security interest in a specific reserve asset.
  5. Real ownership : met. USD1 is held in a personal wallet, but the contract is upgradeable and includes a freeze function, and BitGo reserves the right to block addresses and freeze tokens it judges linked to illegal activity. In June 2026, HTX stated that the World Liberty Financial team had frozen addresses of the platform on sanctions grounds, which HTX disputes.
  6. No fraud or manipulation : met. No sanction or fine against the issuer and no established deception of buyers was found; reported for information are a US House of Representatives investigation into World Liberty Financial and USD1 (February 2026), the delisting of USD1 by HTX after a dispute over address freezes (June 2026) and a heavy concentration of the supply at Binance (about 87% in February 2026 according to Forbes and Arkham).
    • « A U.S. House investigation is probing whether World Liberty Financial, a Trump-associated crypto venture » CoinDesk (2026-02-05)
    • « delisted the Trump family’s USD1 stablecoin after claiming World Liberty Financial wrongly froze the exchange’s addresses » Cointelegraph (2026-06-08)
  7. Cas toléré : to be verified or tolerated case. l'émetteur place les réserves à intérêt sans rien verser au détenteur

Tolerance case

T3. Stablecoin whose issuer holds reserves that include shares of a government money market fund ($3.07 billion of $4.20 billion in redemption assets as of August 31, 2026), may invest them at interest and pays nothing to the holder: BitGo's terms rule out any holder right to interest. The impermissible share as a percentage and the split of the proceeds between BitGo and World Liberty Financial are not published. World Liberty Financial also offers a program of non-transferable points for holding USD1, with no announced monetary value.

Contract security scan

GoPlus security scan of the USD1 contract on Ethereum: 44,025 holders; top ten wallets excluding platforms and contracts 86.6%; code published; token on GoPlus's trust list. Signals found: contract upgradeable through a proxy (is_proxy); top ten wallets at 86.6% of the supply. Reading (rule A.8): issuer identified and regulated (BitGo Bank & Trust, N.A., supervised by the OCC); the upgradeable contract and the freeze function (contract repository: “freeze”) are issuer powers and not rug pull signals; GoPlus does not report the minting, blacklist and pause fields (“?”). The 86.6% share is a matter of concentration (information); GoPlus does not distinguish here any unlabeled platform wallets, and the cross-check with the 87% attributed to Binance by Forbes was not done.

Opinions found during the research

Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.

What could not be verified

Sources read

Other cryptos analyzed

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