IOTA
IOTA#127IOTA is a layer-1 network for trade data, digital identity and assets, run by delegated proof of stake and guided by the IOTA Foundation in Berlin.
- Market cap
- $249.55M
- Volume 24h
- $10.08M
- All-time high
- —
- Circulating supply
- 4.67B
Passes all 8 Shariah criteria.
- 8 pass
- 0 caution
- 0 fail
Verdict history
- HalalCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold IOTA?8 Shariah criteria
8 pass · 0 caution · 0 failNo lending in the protocol; staking rewards are a variable share of new issuance tied to validator performance, but delegators earn them passively.
Riba is interest or any guaranteed increase on a loan. IOTA validators earn a share of a fixed 767,000-IOTA subsidy per epoch plus tips, divided by performance, commission and stake, and rewards are slashed for misbehaviour or poor performance. That is a reward for securing the network, not interest. Islamic Finance Guru, the first authoritative source that rates IOTA, lists it as halal. Because holders can delegate through the protocol and earn without running a validator, the criterion is slightly below the maximum.
IOTA is the working token of a public network: it pays fees and storage deposits and secures the chain.
This criterion asks whether the asset has real value as property (mal). IOTA is needed for fees and storage deposits and is staked to secure the network. Islamic Finance Guru rates it halal, and the general dispute among scholars about whether crypto is property is not a weakness of this coin, so the criterion is at the maximum.
IOTA has no chance-based payout or meme mechanics.
Maysir is gambling: gaining or losing by chance rather than through productive exchange. IOTA is infrastructure for trade data, identity and assets, with no lottery, game or meme design. Market speculation is not a feature of the token, so the criterion is at the maximum.
Fees are burned and validators are paid from issuance and tips; no lending or interest income.
This criterion asks how the network earns and whether any of that income is impermissible. IOTA transaction fees are burned, storage deposits are refunded, and validators are paid from new issuance and tips. The IOTA Foundation is a non-profit. No impermissible income is documented, so the criterion is at the maximum.
Issuance, burns, unlocks and staking rules are published in detail, and the code is open.
Gharar is excessive uncertainty or hidden information. IOTA's whitepaper publishes the per-epoch subsidy, the maximum annual growth, the burn and storage-deposit rules, the unlock end date (October 2027) and the staking mechanics, and the code is open source. No concrete hidden-information problem is documented, so the criterion is at the maximum.
IOTA is used for trade documentation, identity and public-sector records.
This criterion looks at what the asset is actually used for. IOTA supports trade-data systems such as TWIN and ADAPT in Kenya, Nigeria and Morocco, and public records such as those of Argentina's transplant authority. No dominant impermissible use is documented, so the criterion is at the maximum.
Fully paid spot IOTA is widely available and can be held in self-custody.
This criterion asks whether the asset can be owned in a permissible way. IOTA trades spot with full payment and delivery on major exchanges and can be held in a self-custody wallet, including while staked. Ownership does not depend on derivatives or leverage, so the criterion is at the maximum.
IOTA provides public infrastructure for trade and identity; no recent fraud or hack is documented.
Maslahah weighs benefit against harm. IOTA is used as public digital infrastructure in trade and public services in several countries. No source collected documents fraud or a hack on the current network. The criterion is at the maximum.
How you can use it
Tap a card for the ruling and sourcesBuying IOTA with full payment and immediate delivery is widely available, and the tokens can be moved to a self-custody wallet. This is the clean way to own a HALAL-rated asset.
No IOTA exchange-traded fund was found as of 1 October 2026. A fund that holds IOTA itself and does not lend it would be judged like spot.
IOTA pays network fees, but it is not used as general money. Tier-1 bodies such as Indonesia's MUI rule that using cryptocurrency as currency is not permissible.
Delegating IOTA to a validator earns a variable share of new issuance and tips, depending on validator performance, with rewards slashed for misbehaviour; tokens stay in the holder's own account. This is a reward for securing the network, not interest.
Margin trading in IOTA is offered by some exchanges but is never acceptable: it is a deferred exchange with borrowed money and leverage (AAOIFI SS 20).
IOTA perpetual futures are offered on several exchanges, but futures, perpetuals and options always fail under AAOIFI SS 20: deferred exchange without delivery, usually with leverage.
Lending IOTA through exchange or DeFi lending programmes pays depositors interest from borrowers. This is riba.
Yield products on IOTA outside protocol staking get their return from lending or similar interest-like sources and fail.
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.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 itAI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
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