Is First Digital USD (FDUSD) Halal or Haram?
Shariah compliance review of First Digital USD (FDUSD) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
FDUSD is backed by dollars and securities, issued by the company FD121 Limited.<br><br>Reliability is average (there is an audit, but there is also a risk of token lockouts on smart contracts and the risk that more stablecoins are printed than are backed by actual collateral). The audit by S&P Global confirms this status. [S&P Global Document](https://www.spglobal.com/_assets/documents/ratings/research/101590838.pdf)
Staking verdict: Non-Comfortable
FDUSD lacks a conventional reward system or direct economic incentives, as its coin supply is managed via a smart contract. There is no mining or staking for this token. Any instrument that claims to be "staking" for USDT token is not legitimate, which is why it is impermissible to use. <br><br>However, we are not talking about other pledge or liquidity instruments that involves FDUSD. It will have a separate ruling.
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