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Is USDD (USDD) halal?

Questionable

No condition fails, but 4 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.

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The asset

decentralized stablecoin (collateral-backed): overcollateralized loans against TRX, USDT and sTRX, with a peg stability module (PSM) Issuer: USDD protocol (new version, called USDD 2.0, deployed on TRON, Ethereum and BNB Chain) created by the TRON DAO Reserve (TDR), which issued and held the old version (USDDOLD); the documentation presents the new version as community-governed, and the specialized press describes management by the TRON DAO Reserve.

Digital token pegged to the US dollar at 1 USDD to 1 USD, created when borrowers lock collateral (TRX, USDT, sTRX) in protocol “vaults” and borrow USDD against stability fees, with a stability module (PSM) that swaps USDD for USDT and USDC at 1 for 1. About 1.56 billion USDD are in circulation on October 7, 2026 according to the protocol's public API, against about $2.27 billion in collateral; the share of the supply placed in loans by the “Smart Allocator” module is about $1.02 billion.

Why this verdict

  1. Permissible purpose : to be verified or tolerated case. USDD is used to hold and transfer dollars on TRON, Ethereum and BNB Chain, with integration into exchange and decentralized finance platforms; no gambling or impermissible content purpose is found. But each USDD originates from a loan granted to a borrower against stability fees (from 0.5% to 3.5% depending on the collateral, according to the protocol's API), and the protocol places part of its reserves in interest-bearing loans (see c2): the token's purpose is tied to what it represents.
  2. No riba : to be verified or tolerated case. The simple USDD holder receives no yield, but the protocol collects stability fees from borrowers, places the USDD of its treasury reserve in interest-bearing loans (Aave, Spark, JustLend, Morpho) through the “Smart Allocator” and passes this income, minus a small risk reserve, to holders who deposit their USDD in the savings vault (sUSDD, 4% per year read in the API on October 7, 2026). Until now, the yield was funded by the TRON DAO. The origin of the yield can be read only in how the protocol works.
  3. No gambling : met. The spot purchase is of a token transferable between addresses (460,087 holder addresses on TRON according to GoPlus on October 7, 2026), which the stability module swaps at a fixed 1 for 1 against supported stablecoins; it is not a bet on a price difference without purchase or delivery.
  4. No excessive gharar : to be verified or tolerated case. The issuance rules (vaults, minimum ratios of 117% to 130% on TRX, stability module) and the audits (ChainSecurity, CertiK) are published, and the collateral can be read through a public API: about $2.27 billion in collateral for 1.56 billion USDD on October 7, 2026, or about 145%, versus more than 200% targeted after 2022. But who controls issuance and the contracts is not established by a primary source: the documentation speaks of community governance without describing the mechanism, and the specialized press describes management by the TRON DAO Reserve, which withdrew 12,000 bitcoin from the collateral without a DAO vote according to reported critics.
  5. Real ownership : met. USDD is held in a personal wallet and can be withdrawn freely; according to the documentation, no central authority can freeze the token in a personal wallet, and GoPlus finds no blacklist or pause on the TRON and Ethereum contracts. Part of the collateral, however, is USDT, whose issuer can freeze addresses (see the USDT profile).
  6. No fraud or manipulation : to be verified or tolerated case. No sanction against USDD and no established deception of buyers was found. Points to be verified: the token did not hold its peg (price fell to 0.97 USD in June 2022, new deviations in early 2023), the coverage ratio went from a target of more than 200% to about 145-148%, 12,000 bitcoin were withdrawn from the collateral without a DAO vote according to critics, and the contract's minting right is held by an authority whose composition was not read (see c4 and the security scan).

Contract security scan

GoPlus security scan of the USDD contract on Ethereum: 6,161 holders; top ten wallets excluding platforms and contracts 87.9%; code published; token absent from GoPlus's trust list. Signals found: minting right (is_mintable); top ten wallets at 87.9% of the supply. The TRON contract (TXDk8mb…) gives the same readings: minting possible, code published, no honeypot, no blacklist, no pause. Reading (rule A.8): the minting right is held by the protocol's authority (vaults, TDR); the issuer is named (TRON DAO Reserve) but the composition of its authority was not read: the minting right is read as an issuer power under this reservation (see c4 and c6). Concentration alone is information.

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