Velo
VELO#198Velo is a payments and settlement network for Asia built by Velo Labs; VELO is its utility token on Stellar and BNB Smart Chain.
- Market cap
- $97.05M
- Volume 24h
- $6.58M
- All-time high
- —
- Circulating supply
- 17.56B of 24B
Does not clear all 8 Shariah criteria. Needs caution: interest (riba), business model, excessive uncertainty (gharar), and usage.
- 4 pass
- 4 caution
- 0 fail
Verdict history
- DoubtfulCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold Velo?8 Shariah criteria
4 pass · 4 caution · 0 failVELO itself pays no documented interest, but the Velo ecosystem passes US Treasury yield to users and VELO staking terms are not published.
Riba is interest or any guaranteed increase on a loan. Holding VELO pays nothing. But in September 2024 Velo Labs announced that the backing of its USDV stablecoin includes an investment in BlackRock's tokenized Treasury fund and, later that month, tokenized Treasury bills, and said the yield is available to USDV holders and to users on its platforms; it added that users 'could potentially stake USDV' to earn it. That yield is interest on government debt. For VELO staking, CryptoUmmah found no source showing whether rewards are fixed or variable.
Interest-based reserves were announced but their current share is unknown, so the criterion is at caution.
VELO is the utility token of a working payments network.
This criterion asks whether the asset has real value as property (mal). VELO is used for settlement, staking and governance in a network with live payment products. CryptoUmmah rates Velo not permissible, but for reasons of disclosure and staking terms, not because the token lacks substance. No coin-specific defect in the nature of the token was found, so the criterion is at the maximum.
VELO is a utility token, not a game of chance.
Maysir is gambling: gaining or losing by chance rather than through productive exchange. VELO has no gambling mechanics of its own. The perpetual trading on the Universe exchange is counted under business model and usage. No concrete problem with the token itself was found, so the criterion is at the maximum.
Payments are permissible income, but the ecosystem also announced a perpetual-trading exchange and Treasury-yield products.
This criterion asks how the issuer or ecosystem earns and whether that income is impermissible. Payments, remittances and currency conversion are permissible services. But Velo's Universe exchange was announced in September 2025 as a 'Hybrid Perp Dex' with perpetual trading, and its 2024 announcements say the USDV backing includes US Treasury products that earn interest. Velo does not disclose how much of its income comes from each line, and CryptoUmmah notes that reported protocol revenue is very small. Impermissible income exists but its share is unknown, so the criterion is at caution.
Staking terms, audits and token distribution are not clearly disclosed, and holdings are concentrated.
Gharar is excessive uncertainty or hidden information. The company and its advisors are named. But CryptoUmmah finds that staking terms are undocumented, that claimed audits cannot be verified, and that top holders control over 40% of supply. CoinMarketCap shows a CertiK rating of 4.3 (the page does not state the scale), and the token page on Velo's own website showed a circulating supply of 0.00B on 1 October 2026. These are concrete uncertainties, so the criterion is at caution.
Velo is used for payments and currency conversion, but also for perpetual trading and Treasury-yield products.
This criterion looks at what the asset and its network are actually used for. The main consumer product, Orbit Plus, converts crypto to local currency and offers a debit card in 15 countries, which is permissible use. Alongside it, Velo promotes perpetual futures trading on Universe and yield from tokenized US Treasuries through USDV. These concrete uses put the criterion at caution.
Fully paid spot VELO is widely available and can be held in self-custody.
This criterion asks whether the asset can be owned in a permissible way. VELO trades spot with full payment and delivery on more than 15 exchanges and can be held in self-custody on Stellar or BNB Smart Chain. The criterion is at the maximum.
Cheaper cross-border payments in emerging markets are a real benefit; no fraud by the project was found.
Maslahah weighs benefit against harm. Velo aims to make cross-border payments and remittances faster for users and businesses in emerging markets. No fraud or hack by the project was found in the sources collected. Its disclosure gaps and interest-based products are already counted under other criteria, so the criterion is at the maximum.
How you can use it
Tap a card for the ruling and sourcesBuying VELO with full payment and immediate delivery is widely available on exchanges, and the tokens can be moved to a self-custody wallet. Spot is acceptable for a DOUBTFUL asset for those who follow the permissive view; note that CryptoUmmah rates Velo Haram.
No exchange-traded fund or product holding VELO was found in the sources collected. A product that held VELO itself would be judged like spot; its structure would need checking.
Velo's payment products settle mainly in stablecoins and local currency, not in VELO itself. Tier-1 bodies such as Indonesia's MUI rule that using cryptocurrency as currency is not permissible.
VELO secures no network of its own on Stellar or BNB Smart Chain. Velo says the token is used for staking, but the reward source, rate and lock-up are not published; a fixed or guaranteed rate would be a problem. Check the terms before staking.
Margin trading is never acceptable: it is a deferred exchange with borrowed money and leverage (AAOIFI SS 20).
Futures, perpetuals and options always fail under AAOIFI SS 20: deferred exchange without delivery, usually with leverage.
Lending VELO through exchange or DeFi lending programmes pays depositors interest from borrowers. This is riba.
Yield on USDV and related Velo products comes from tokenized US Treasury funds and bills, which is interest. Yield products on VELO built on lending or leverage also fail.
Scholars quotes
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.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.Our current position is 'tawaquf'; we can't say it is halal or haram, but we say it is better not to engage in itAs 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.AI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
Section in preparation
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