EURC
EURC#95EURC is Circle's euro stablecoin, issued under the EU's MiCA rules and redeemable 1:1 for euro.
Passes our Shariah screening. Fails: business model.
- 7 pass
- 0 caution
- 1 fail
Verdict history
- HalalCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold EURC?8 Shariah criteria
7 pass · 0 caution · 1 failEURC pays holders no interest, which MiCA forbids for e-money tokens.
Riba means interest, or any fixed increase on a loan or on an exchange of money. EURC is redeemable 1:1 for euro and, as a MiCA e-money token, may not pay holders interest. CryptoUmmah, the first authoritative source that rates EURC, finds no interest, coupon or yield mechanism in the token; its riba concern is whether the reserves earn interest, which is judged under business model. No concrete interest feature in the token was found, so the criterion is at the maximum.
EURC is a redeemable claim on euro reserves held by a licensed issuer.
EURC is a claim on Circle, which says it is always redeemable 1:1 for euro, issued by a licensed electronic money institution. Malaysia's SC Shariah Advisory Council recognises digital currencies as property and classes currency-backed ones as currency. CryptoUmmah rates EURC permissible, so the criterion is at the maximum.
EURC is built to stay at one euro and has no chance-based feature.
Maysir means gambling, or gains that depend purely on chance. EURC is held as a euro unit for payments and settlement, not to profit from price swings, and has no lottery or chance-based feature, so the criterion is at the maximum.
Circle, the issuer, earns most of its income from interest on reserves.
This criterion looks at how the company behind a token earns. If 5% or more of its income comes from interest, it fails. Circle reported $668 million of reserve income out of $701 million total in Q2 2026, about 95%; its report does not break out EURC, and whether EURC reserves themselves earn interest is not disclosed. CryptoUmmah rates EURC permissible and asks for 1.8% purification for this uncertainty, but the issuer's income is clearly interest-based, so this analysis fails the criterion, as for USDC.
Licensed issuer and monthly Big Four checks, but the reserve breakdown is not public and Circle can freeze tokens.
Gharar means excessive uncertainty or lack of transparency. EURC is issued by a licensed EU e-money institution under MiCA, reserves are held at regulated EEA institutions, and a Big Four firm confirms monthly that reserves exceed tokens. The score is lowered slightly within pass because the composition of the euro reserves is not shown on Circle's public pages, no smart-contract audit was identified, and Circle keeps sole control over minting, freezing and redemption.
EURC is used for euro payments, settlement and treasury operations.
This criterion looks at what the asset is actually used for. CryptoUmmah documents EURC use in cross-border payments, settlement and treasury operations, and it is a euro trading pair. No source shows a notable share of EURC in lending, so the criterion is at the maximum.
EURC can be bought outright and held in a self-custody wallet.
This criterion asks whether the token can be owned in a normal, fully paid way. EURC trades spot, can be held in self-custody on many networks and can be offered by EU-licensed providers under MiCA. It does not exist only as a leveraged product, so the criterion is at the maximum.
EURC gives regulated, fast access to euro payments on-chain.
Maslahah weighs public benefit against harm. EURC gives people and businesses a regulated euro unit that settles on public blockchains, under EU supervision and monthly reserve checks. No concrete harm specific to EURC was found, so the criterion is at the maximum.
How you can use it
Tap a card for the ruling and sourcesBuying EURC outright and holding it, on an exchange or in your own wallet, is acceptable at this verdict. If EURC is treated as money, exchange it on the spot and at equal value when swapping for euro or other currencies.
Not available: no exchange-traded fund holding EURC was found. A fund holding it would be judged like spot, and its structure would need checking separately (no interest income, no lending).
EURC is designed for payments and settlement in euro. Indonesia's MUI (tier 1) holds that using cryptocurrency as currency is haram, so paying with it is caution.
Not available natively: EURC is not a proof-of-stake coin, so there is no validation work to be paid for. Products marketed as 'EURC staking' pay returns from lending or reserve income, covered under lending and yield.
Always fail: borrowing to trade with leverage, without full delivery (AAOIFI SS 20).
Always fail: futures, perpetuals and options are deferred exchanges without delivery, usually with leverage (AAOIFI SS 20).
Lending EURC for a return, on DeFi protocols or exchange lending programmes, is interest on a loan of money (riba).
Exchange 'earn' products on EURC pay a percentage return on a euro balance, funded by lending or reserve interest; this is treated as interest whatever it is called.
Scholars quotes
The opinion on this is the same as doing the same with any halal assets such as shares – 1) is permissible, 2) is more debatable and there are differing opinions on short-term trading.As I mentioned at the beginning of this article it is not necessary to substantiate the permissibility of something as long as there are no prohibited factors involved in it or surrounding it.Penggunaan cryptocurrency sebagai mata uang hukumnya haram, karena mengandung gharar (ketidakjelasan), dharar (bahaya) dan bertentangan dengan Undang-Undang nomor 7 tahun 2011 tentang Mata Uang dan Peraturan Bank Indonesia nomor 17 tahun 2015 tentang Kewajiban Penggunaan Rupiah di Wilayah Negara Kesatuan Republik Indonesia.Sebagaimana mata wang yang lain, mata wang digital hendaklah tidak digunakan sebagai bayaran kepada barangan, perkhidmatan dan aktiviti tidak patuh Syariah seperti pembelian dadah, pelacuran, perjudian dan pendanaan aktiviti keganasan serta penggubahan wang haram.The SAC has also resolved that investment and trading of Digital Assets that fulfil the above requirements and which are traded on Digital Asset Exchange (DAX) registered with SC are permissible.If a digital currency is backed by ribawi items comprising gold, silver and currency, it is categorised as a currency from Shariah perspective. Hence, the trading of such digital currency is subject to the principle of bai` al-sarf.Third: In light of the above and given the significant risks associated with this type of currencies and the instability of their transactions, the Council of the Academy recommends pursuing research and studies on issues affecting its ruling.Bitcoin is a digital currency that does not meet the legal and Sharia criteria that make it a currency subject to the rulings of dealing with official legal currencies recognized internationally.بناءً على ذلك: فلا يجوز شرعًا تداول عملة "البتكوين" والتعامل من خلالها بالبيعِ والشراءِ والإجارةِ وغيرها، بل يُمنع من الاشتراكِ فيها؛ لعدمِ اعتبارِها كوسيطٍ مقبولٍ للتبادلِ من الجهاتِ المخُتصَّةِ، ولِمَا تشتمل عليه من الضررِ الناشئ عن الغررِ والجهالةِ والغشِّ في مَصْرِفها ومِعْيارها وقِيمتها، فضلًا عما تؤدي إليه ممارستُها من مخاطرَ عاليةٍ على الأفراد والدول.According to research and opinion of experts so far, cryptocurrency is not considered ‘ maal ’ (wealth) in Sharia.Muhammadiyah memandang transaksi dan investasi kripto pada dasarnya mubah (boleh) tetapi dengan syarat tertentu.Our current position is 'tawaquf'; we can't say it is halal or haram, but we say it is better not to engage in itFiat-backed stablecoins are generally considered permissible, fully backed by the underlying currency or not, as long as this information is transparently disclosed to the users.AI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
Section in preparation
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