HALAL Screening Cryptocurrency
Is First Digital USD Halal?
Complete Shariah Compliance Screening of First Digital USD to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is First Digital USD
FDUSD is a type of cryptocurrency that’s designed to be a stablecoin, meaning its value is pegged to a stable asset, like the US dollar. This makes it less volatile than other cryptocurrencies, which can swing wildly in price. Essentially, if you have one FDUSD, it should always be worth about one US dollar. This stability makes it easier for people to use it for everyday transactions, like buying goods or services, without worrying about sudden price changes.
What makes FDUSD unique is its focus on providing a reliable digital currency that combines the benefits of traditional money with the advantages of blockchain technology. It allows for fast and secure transactions, often with lower fees than traditional banking methods. Plus, because it operates on a decentralized network, it gives users more control over their money without needing a bank as an intermediary. So, it’s like having the best of both worlds—stability and the innovative features of cryptocurrency!
Transparent and Credible Team
The team behind FDUSD is associated with First Digital Labs, a subsidiary of First Digital Limited. Key individuals include Vincent Chok (CEO) and Gunnar Jaerv (COO), with backgrounds in finance and technology. The parent company, First Digital Trust, was founded in 2019 and has a track record in trust and custody services.
Score: 80
Clear Use Case or Purpose
FDUSD is designed as a stablecoin to provide stability and trust within the volatile cryptocurrency market. Its aim is to bridge the gap between traditional finance and digital currency, offering a reliable digital currency for everyday transactions and DeFi applications.
Score: 95
Absence of Fraudulent Behavior
There is no direct evidence of scams or rug-pull risks. FDUSD has undergone smart contract audits by PeckShield and EtherAuthority. The reserves are subject to monthly attestation by Prescient Assurance, a US-based accounting firm.
Score: 90
Ethical Practices
First Digital has robust Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) procedures in place. They adhere to applicable rules regarding AML and CTF, designed to prevent the use of FDUSD for money laundering or terrorist financing.
Score: 85
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First Digital USD Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
First Digital USD Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
First Digital USD Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking First Digital USD Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
First Digital USD Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform