USD CoinVertible USDCV
Rank #1043StablecoinsUSD StablecoinSolana Ecosystem
Mashbooh · Doubtful · Risky
Quick Answer

Is USD CoinVertible halal?

USD CoinVertible is classified as doubtful (mashbooh), with a Shariah compliance score of 65.3/100 under our 27-point screening methodology.

Overall65.3Mashbooh · Doubtful · Risky
Riba58.6Mashbooh
Gharar64Mashbooh
Maysir76Halal
Full reportMethodology
65.358.6RIBA64GHARAR76MAYSIR
Shariah screening · tap a sub-dial
Project diligence tap a tile →
Moderate RibaModerate Gharar (Material Uncertainty)Minor Maysir (Incidental)

RibaSharia pillar · 58.6/100 · Review · 10 criteria

Mashbooh. Prohibition of guaranteed, time-based returns on money.

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Core Protocol Business85
Transaction Fees40
Treasury Assets40
Revenue Model40
Protocol Revenue40
Interest Assessment80
Rewards Distribution100
Asset Backing85
Islamic Contract Classification100
Rewards Structure100
How USDCV compares
Pax Dollar
66.4
★ USD CoinVertible (USDCV)
65.3
Global Dollar
56.9
AUSD
55.9
EUR CoinVertible
54.8

Compare directly: vs Pax Dollar · vs Global Dollar · vs AUSD

Purify your profits from USDCV

A portion of profit from USDCV isn't fully yours to keep — here's how to return it

What does "purification" mean?

Even fully screened assets can pick up small amounts of tainted income along the way — purification means giving that specific portion back, not paying extra.

Based on USD CoinVertible's riba, gharar and maysir screening — see how we calculate purification amounts.

Overseen by Imam Omar Siddiqi, Shariah scholar and Imam of JMIC, among others, with donations paid directly to Jamiya Masjid & Islamic Centre — UK registered charity no. 1089986. Sent wallet-to-wallet; CryptoUmmah never custodies your funds. Always verify the destination address before confirming in your wallet.

Mashbooh · Doubtful · Risky

Your exact purification amount, calculated from USD CoinVertible's Shariah compliance score.

$
Amount to return0.00 USDC

to Jamiya Masjid & Islamic Centre, a registered UK charity

Purification isn't Zakat and isn't tax-deductible — it's the return of income that wasn't rightfully yours.

Scholar-verified · UK registered charity
Key facts
ChainEthereum
Last reviewed
ThanvirWritten by ThanvirFounder, Ex Director S&P Global EnergyImam Omar SiddiqiReviewed by Imam Omar SiddiqiShariah Scholar
Analyst summary

USD CoinVertible (USDCV) is a 1:1 USD-pegged Electronic-Money Token issued by SG-FORGE, Société Générale's digital-asset subsidiary, on Ethereum and Solana. No named third-party audit firm or published audit findings exist in available sources, and reserve composition detail is undisclosed beyond MiCA's 1:1 backing requirement. Its actual utility is settlement/payment, not yield generation, though third-party venues (Morpho, Uniswap, Bitpanda) layer lending and liquidity yield atop it. The single biggest Shariah consideration is whether reserves backing the peg are held in interest-bearing instruments, and the near-total absence of independent reserve verification, which sustains ambiguity despite the reputable, regulated issuer.

The research

27-point Shariah breakdown of USDCV

Islamic Finance Principles Assessment

Riba — Does USD CoinVertible involve interest?

USDCV itself pays no interest to holders and carries no native yield mechanism, functioning as a plain fiat-pegged payment token. However, because it is backed by fiat reserves under a bank-affiliated issuer operating within conventional finance, there is reasonable likelihood that treasury assets generate interest income at the issuer level, even if this is not distributed to token holders. For Muslim investors, the token's own design is riba-free, but the surrounding institutional treasury model warrants caution.

Assessment: Moderate Riba Score: 58.6/100

Our methodology examines 10 criteria to evaluate how well USD CoinVertible avoids interest-based mechanisms.

Sources do not disclose USDCV's specific revenue sources, such as reserve interest or issuance fees, nor its treasury composition beyond an implied 1:1 fiat backing mandated by MiCA's EMT regime. Given SG-FORGE is a subsidiary of a major conventional bank, it is plausible that reserves are held in interest-bearing instruments like short-term government securities or bank deposits, a common industry practice for fiat-backed stablecoins. No confirmation either way exists in the reviewed material, leaving this a genuine information gap rather than a confirmed riba exposure.

USDCV's core business model is issuance and redemption of a payment token, not lending or borrowing. However, third-party integrations documented in sources allow USDCV to be deposited into Morpho vaults for collateralized lending and borrowing against bitcoin, ether, and tokenized money-market funds, with Bitpanda offering retail access to this yield. These lending arrangements are external to USDCV's own protocol and may or may not involve interest-based structures depending on the specific vault mechanics, which sources do not detail sufficiently to confirm compliance either way.

Gharar — How much uncertainty does USD CoinVertible involve?

USDCV carries comparatively low uncertainty for a crypto asset, given its transparent institutional sponsor and regulatory framework, but meaningful information gaps remain around audits and reserves. The named leadership and MiCA disclosure obligations reduce ambiguity, while the absence of published audit findings and reserve-composition detail increase it. On balance, the structural transparency is stronger than typical DeFi tokens, though critical verification gaps persist.

Assessment: Moderate Gharar (Material Uncertainty) Score: 64/100

Our methodology examines 15 criteria including team transparency, audit quality, and governance.

USDCV is issued by SG-FORGE, a named, regulated subsidiary of Société Générale, with public leadership including CEO Jean-Marc Stenger, who has spoken openly about the token's purpose as a follow-on to the earlier EURCV stablecoin. This is a fully traceable, corporate-backed initiative rather than an anonymous team, operating under MiCA's Electronic-Money Token regime with mandated white-paper and iXBRL disclosures. Smart-contract open-source status is not addressed in available sources, leaving one transparency gap despite otherwise strong institutional accountability.

No source names a security-audit firm, audit date, or published findings for USDCV's smart contracts, and no independent reserve-attestation detail is provided beyond the general MiCA 1:1 backing requirement. This is a clear, plainly-stated gharar concern: an unaudited or unverified-reserve stablecoin, even from a reputable bank sponsor, leaves token holders unable to independently confirm backing integrity. MiCA regulatory filings offer some structural assurance, but they are not a substitute for a specific, published smart-contract or reserve audit.

Maysir — Does USD CoinVertible involve gambling or speculation?

USDCV is not designed for gambling or speculation; it is a fixed 1:1 pegged payment instrument with no native yield or price-appreciation mechanism. Its stability-by-design limits speculative use at the protocol level, distinguishing it from volatile or reward-driven tokens. The final take is that USDCV's core design sits comfortably outside maysir concerns, though secondary-market and third-party DeFi activity warrant separate note.

Assessment: Minor Maysir (Incidental) Score: 76/100

Our methodology examines 11 criteria to determine whether USD CoinVertible is a gambling instrument or a genuine economic tool.

USDCV serves a genuine real-world function as a USD-denominated settlement and payment instrument, issued under a formal EU regulatory regime (MiCA's EMT classification) by a major bank subsidiary. Its purpose is cross-border and on-chain payment efficiency, not price speculation, and its 1:1 peg structurally discourages speculative holding since there is no appreciation potential. This productive, utility-first design is a meaningful distinguishing factor from speculative or meme-driven tokens whose value derives purely from trading sentiment.

Trading in USDCV began only in July 2025, and adoption remains modest and largely eurozone-centric despite its USD denomination, suggesting limited secondary-market speculative volume so far. Third-party venues like Morpho and Uniswap enable leveraged or speculative positioning using USDCV as collateral, but this activity originates from external DeFi platforms rather than USDCV's own design, and such potential misuse should not be read as determinative of the token's own Shariah standing. On balance, genuine utility outweighs observed speculative behavior.

The Full 27-Point Screening

1. Legitimacy (4 criteria)

CriterionScoreAnalysis
Team Transparency90/100Named executives and a regulated bank-subsidiary issuer make the team fully transparent and traceable.
Fraud & Scam Risk85/100No fraud, hack, or rug-pull indicators appear in the sources, and the issuer operates under MiCA regulatory registration.
Use Case Legitimacy85/100The coin has a clear, disclosed use case as a regulated payment/settlement stablecoin.
Ethical Practices75/100The token's own design is a plain fiat-pegged payment instrument; third-party DeFi lending built on top of it does not determine its own ruling.

Summary: USDCV is issued by SG-FORGE, a regulated subsidiary of Société Générale, with named leadership and no evidence of fraud or scam behavior found in the sources.

2. Project Operations (9 criteria)

CriterionScoreAnalysis
Core Protocol Business85/100The base protocol is a payment/settlement stablecoin, not a prohibited sector.
Transaction Fees40/100 (low evidence)Sources do not describe how any transaction fees are handled.
Treasury Assets40/100 (low evidence)Treasury/reserve composition is not detailed beyond the general fiat-peg requirement.
Revenue Model40/100 (low evidence)No revenue model for the issuer or protocol is disclosed in the sources.
Transparency60/100A MiCA-mandated white paper/iXBRL filing exists, but code openness and full disclosure are not addressed.
Governance20/100Issuance and redemption are fully controlled by SG-FORGE with no holder governance mechanism described.
Launch Fairness70/100The token is continuously minted against reserves rather than distributed via a token-launch event; no unfair-launch evidence appears.
Token Distribution70/100No team/insider allocation model is described; distribution follows peg-based minting rather than a fixed supply split.
Speculation/Utility Ratio90/100It is consistently described as a utility payment instrument, not a speculative asset, by design.

Summary: The base protocol is a MiCA-regulated, dollar-pegged Electronic-Money Token issued on Ethereum and Solana, with centralized bank governance and no disclosed pre-mine or insider-vesting token-launch structure.

3. Financial Health (4 criteria)

CriterionScoreAnalysis
Protocol Revenue40/100 (low evidence)Protocol-level revenue sources for USDCV are not stated in the sources.
Financial Status60/100Backing by a major bank and regulatory filings suggest stability, but detailed financials specific to USDCV are absent.
Interest Assessment80/100The base protocol only mints/redeems a pegged token; lending/borrowing occurs via third-party dApps (Morpho, Uniswap), not the protocol itself.
Audit Quality20/100 (low evidence)No named audit firm, date, or findings for USDCV could be found in the sources.

Summary: Sources describe no native lending, borrowing, or protocol-level revenue for USDCV itself, only third-party DeFi yield venues built atop it, and no independent security audit of USDCV could be found.

4. Token Economics (5 criteria)

CriterionScoreAnalysis
Token Purpose90/100USDCV is a clear utility payment token, not a meme or purely speculative asset.
Governance RightsN/AThe token carries no holder governance rights, which is standard and raises no concern for a fiat-pegged payment stablecoin.
Rewards DistributionN/AThere is no native reward mechanism at all, consistent with a non-yield-bearing payment stablecoin.
Speculation ControlsN/AThe token is inherently non-speculative by design, being pegged 1:1 to the US dollar.
Asset Backing85/100The token is backed by USD fiat reserves under the MiCA Electronic-Money Token regime.

Summary: USDCV is a genuine utility-oriented payment stablecoin pegged 1:1 to the US dollar rather than a speculative or governance token, with no holder voting rights or native reward mechanism.

5. Staking Mechanism

USD CoinVertible has no native staking mechanism, so these five criteria are not applicable and are excluded from the score entirely rather than counted as zeros.

Overall Assessment: USDCV appears to be a legitimate, regulated, bank-issued payment stablecoin with genuine utility, though several operational, treasury, and audit details remain undisclosed in the sources reviewed.

Sources consulted