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Is Global Dollar (USDG) halal?

Questionable

No condition fails, but 3 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

stablecoin Issuer: Paxos Digital Singapore Pte. Ltd., a licensed “Major Payment Institution” supervised by the Monetary Authority of Singapore, and Paxos Issuance Europe Oy (Finland, an electronic money institution supervised by the FIN-FSA, MiCA-compliant); Paxos group; Global Dollar Network of distribution partners (Robinhood, Kraken, Galaxy Digital and others).

Digital token pegged to the US dollar at 1 USDG for 1 USD, backed according to the issuer by reserve assets held in segregated accounts (the MiCA white paper cites cash and short-term government debt as examples of the high-quality assets required; the figures on the composition were not read), launched in November 2024. About 3.19 billion tokens are in circulation on October 7, 2026 according to CoinMarketCap; the token exists on Arbitrum, Ethereum, Ink, Mantle, Robinhood Chain, Solana and X Layer.

Why this verdict

  1. Permissible purpose : met. USDG is used to send, receive and hold dollars on several public blockchains and to settle trades between Global Dollar Network platforms. 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 in c2).
    • « Anyone with a Solana or Ethereum compatible wallet can send or receive USDG. » Paxos (page USDG) (2026-10-07)
    • « USDG is issued on Arbitrum, Ethereum, Ink, Mantle, Robinhood Chain, Solana, X Layer » Paxos (page USDG) (2026-10-07)
  2. No riba : to be verified or tolerated case. The USDG holder receives nothing from the token itself, but the issuer earns its main revenue from interest on the reserves: Paxos Issuance Europe states this in its MiCA white paper, and the Global Dollar Network passes on up to 100% of the yield on the backing assets to partner platforms, some of which pay “rewards” to their customers (optional programs). The breakdown of the split between Paxos, the partners and the holders is not published.
  3. No gambling : met. The spot purchase is of a token transferable on public blockchains, which the issuer redeems 1 for 1 against dollars (to holders in the European Economic Area through Paxos Issuance Europe, to others through Paxos Digital Singapore); it is not a bet on a price difference without purchase or delivery.
  4. No excessive gharar : met. Rights, issuance rules and reserves are documented: MiCA white paper filed, reserves in segregated accounts protected from the issuer's bankruptcy, attestation reports published every month (KPMG since February 27, 2026, Enrome LLP before, under the standards of the Singapore institute of accountants) and contract audits by Zellic and Trail of Bits. The reports themselves and the detailed reserve figures could not be opened (page loaded by script).
  5. Real ownership : met. USDG is held in a personal Ethereum or Solana wallet, but Paxos keeps the power to freeze and upgrade the tokens and to mint and burn them; the freeze, pause and supply-control roles are entrusted to multi-signature wallets, according to the contract repository.
  6. No fraud or manipulation : to be verified or tolerated case. Paxos Trust Company, a company in the same group as the USDG issuers, agreed in August 2025 to a settlement with the New York Department of Financial Services (civil penalty of $26.5 million and a commitment of at least $22 million for its compliance program) for failures in due diligence on its former partner Binance and in its anti-money-laundering program; the settlement does not concern USDG or any deception of buyers, but is a sanction against the issuing group on another ground.
    • « Paxos consented to a $26.5 million civil penalty and to commit a minimum of $22 million to strengthen its compliance program. » Morrison Foerster (2025-08-12)
    • « failure to conduct sufficient due diligence of a former partner, Binance Holdings Limited (Binance) » Morrison Foerster (2025-08-12)
  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 earns its main revenue from interest on the reserves and pays nothing to the holder at the token level: Paxos Issuance Europe states this in its white paper, and a secondary guide says USDG does not pay interest directly. Part of the yield is passed on to Global Dollar Network platforms (up to 100% according to the network), some of which pay rewards to their customers under their own terms; the impermissible share as a percentage is not published.

Contract security scan

GoPlus security scan of the USDG contract on Ethereum: 9,275 holders; top ten wallets excluding exchanges and contracts 74.5%; code published; token absent from the GoPlus trust list. Signals noted: contract upgradeable via proxy (is_proxy); top ten wallets at 74.5% of the supply. Reading (rule A.8): issuer identified and supervised (Paxos Digital Singapore and Paxos Issuance Europe); the upgradeable contract, minting and freezing are issuer powers and not rug pull signals (the contract repository lists the freeze, pause and supply-control roles); GoPlus does not fill in the honeypot, minting, blacklist, pause and tax fields (“?”). The 74.5% share is a matter of concentration (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