USDD
USDD#52USDD is a crypto-backed US dollar stablecoin from the TRON ecosystem, minted against TRX and other collateral.
- Market cap
- $1.53B
- Volume 24h
- $1.48M
- All-time high
- $1.24
- −19.37% from ATH
- Circulating supply
- 1.56B
Fails our Shariah screening. Needs caution: nature of the asset, excessive uncertainty (gharar), usage, and benefit and harm (maslahah). Fails: interest (riba) and business model.
- 2 pass
- 4 caution
- 2 fail
Verdict history
- Not halalCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold USDD?8 Shariah criteria
2 pass · 4 caution · 2 failUSDD's own savings product, sUSDD, pays holders a rate funded by interest from lending markets, and the rate is benchmarked to the US Federal Reserve rate.
Riba means interest, or any fixed increase on a loan or an exchange of money. Plain USDD pays nothing: holding it in a wallet earns no return. But the protocol is built around an official savings rate. Depositing USDD into USDD Earn gives sUSDD, whose value in USDD rises over time; the USDD Savings guide says depositors start earning interest automatically, and the public API calls the rate the "DSR APY".
The money for that rate comes from the Smart Allocator, which USDD docs say invests reserve capital to earn returns in the form of interest and platform rewards and passes net returns to stakers. On 27 September 2026 it held about $1.02 billion in lending and savings markets (Spark, Aave, JustLend, Morpho), about 64% of all USDD and sUSDD in debt terms. The rate itself is set by a Dynamic APY model that references the Federal Reserve target rate and aims to stay above it. Earlier, the rate was subsidised by TRON DAO. sUSDD is opt-in, so a holder can avoid it. Liberandum still rates this criterion fail, as for other crypto dollars with a built-in savings rate (such as DAI with the DSR and USDe with sUSDe): the interest-bearing reserves are a core part of the design, the protocol exists to pay that interest to its users, and more than 30% of the backing is in interest-bearing loans whose income goes to token holders. ShariaQuant reaches the same conclusion.
USDD is an over-collateralised crypto dollar that can usually be swapped one-for-one for USDT, but it is not a claim on any issuer and its backing is mostly TRX and loans.
USDD is a token minted against collateral. Users lock TRX, USDT or other assets in vaults and borrow USDD; the Peg Stability Module (PSM) also swaps USDT or USDC for USDD one-for-one and back, up to the reserves available. On 27 September 2026 about $2.26 billion of collateral stood behind about $1.56 billion of USDD and sUSDD, so the system is over-collateralised on paper. But no company promises to redeem USDD: holders rely on the PSM's limited reserves (about $85 million of USDT) and on the market.
Much of the backing is TRX, the TRON network's own volatile token, and about $1 billion is USDD lent into DeFi markets through the Smart Allocator. The first version lost its peg in June 2022, and the rating agency Bluechip gave USDD an F before the 2.0 upgrade. Authorities also disagree on whether crypto tokens are property (mal); Malaysia's SC Shariah Advisory Council recognises digital tokens as mal, while several state fatwa bodies reject cryptocurrency.
USDD is built to hold a steady dollar value, not to be bet on.
Maysir means gambling or pure speculation. USDD targets a fixed price of one dollar, and on 27 September 2026 it traded at about $0.997. People use it to hold and move dollars and as a building block in TRON DeFi, not to bet on price swings. The main risk is not speculation but a loss of the peg, which is a question of backing, covered under the nature of the asset and uncertainty. Leveraged strategies built with USDD, such as borrowing against collateral to loop into yield, are separate activities covered under trading mechanisms.
Almost all protocol income is interest: stability fees on USDD loans and interest earned by the Smart Allocator in lending markets.
The protocol earns in two ways. First, users who mint USDD in vaults pay a yearly stability fee (0.5% on TRX vaults, 1% on USDT and staked-TRX vaults, 2.5–3.5% on WBTC vaults); USDD docs say the Jug contract adjusts debt levels to reflect accrued interest, and DefiLlama describes these fees as interest paid to borrow. DefiLlama counted about $4.2 million of such fees in the past year. Second, the Smart Allocator lends about $1.02 billion into markets such as Spark, Aave and JustLend; the USDD API reported about $30 million of cumulative Smart Allocator earnings.
Both streams are interest, far above the 5% limit on impermissible income. Part of the income is passed to sUSDD holders, and CoinDesk Research reports that USDD earnings above a $10 million threshold go to buying back and burning JST, the token of the related JustLend DAO. ShariaQuant also estimates that more than a third of revenue is interest.
Collateral and contracts are on-chain and audited, but governance is undisclosed, the team chooses where reserves are invested, and backing was changed in the past without a vote.
Gharar means excessive uncertainty. On the positive side, USDD's vaults, PSM and Smart Allocator positions can be checked on-chain and through a public API, and ChainSecurity and CertiK audited the contracts in 2025. On the negative side, the docs say governance details will be shared soon, and Smart Allocator platforms are selected by the USDD and JUST DAO teams, not by an on-chain vote. In August 2024 the TRON DAO Reserve removed about $732 million of bitcoin from USDD's reserves without a DAO vote, leaving it almost entirely backed by TRX.
Today TRX is still nearly all of the vault collateral outside the Smart Allocator and PSM, so a sharp fall in TRX would strain the system. The rating agency Bluechip gave USDD an F before the 2.0 upgrade. These points amount to real, but not complete, opacity.
USDD is used as a dollar on TRON, but a large part of its supply sits in interest-earning products.
USDD serves as a US dollar stablecoin on TRON, Ethereum and BNB Chain, held by about 466,000 addresses on TRON. At the same time, much of its use is tied to interest: on 27 September 2026 about $217 million was deposited in sUSDD to earn the savings rate, and about $990 million of USDD was lent into DeFi markets by the Smart Allocator. Vault users also borrow USDD at interest to deploy it in yield strategies. No source measures how much USDD is used for payments versus interest-bearing finance, so this criterion is caution rather than fail.
USDD can be bought outright and held in full, on exchanges or through the PSM.
USDD is an ordinary token that can be bought on the spot and held in a self-custody wallet; the docs say no central authority can directly freeze it there. It can also be obtained one-for-one for USDT or USDC through the Peg Stability Module. Holding plain USDD does not require joining sUSDD or any lending product, so ownership without interest is possible.
USDD offers an over-collateralised dollar on TRON, but its record of peg loss, unilateral reserve changes and interest-driven growth weighs against it.
Maslahah means weighing benefit against harm. USDD gives TRON users a dollar stablecoin that does not depend on a bank and cannot be frozen in a self-custody wallet. Against that, the first version lost its peg in 2022, the TRON DAO Reserve moved $732 million of bitcoin out of the reserves in 2024 without a vote, and growth has leaned on high advertised yields, first subsidised by TRON DAO and now paid from lending interest. Users who do not understand these risks can be harmed.
How you can use it
Tap a card for the ruling and sourcesUSDD can be bought on the spot, but spot counts as acceptable only for an asset rated HALAL or DOUBTFUL. USDD is rated HARAM because its savings rate and protocol income come from interest, so spot purchase is not rated acceptable here.
Not available: no exchange-traded fund holds USDD. A fund holding it would be judged like spot, which fails for this asset.
Paying with USDD means holding an asset that did not pass screening, so it is not rated acceptable. Indonesia's MUI (tier 1) also holds that using cryptocurrency as currency is haram.
USDD is not a proof-of-stake coin, so there is no validation work to be paid for. What USDD calls staking is depositing into sUSDD, which pays a rate funded by lending interest; that is interest, not a reward for network work.
Always fail: borrowing to trade with leverage, without full delivery.
Always fail: futures, perpetuals and options are deferred exchanges without delivery, with leverage.
Lending USDD for a return, or minting USDD in a vault and paying the stability fee, is a loan of money with interest (riba). The Smart Allocator itself lends reserves into markets such as Spark, Aave and JustLend.
sUSDD, the official savings token, pays about 4% a year (27 September 2026) from interest earned in lending markets, with the rate benchmarked to the US Federal Reserve rate. This is interest.
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.Consequently, the protocol's revenue purity fails, as the estimated share of haram revenue generated from these interest-bearing investments exceeds the 33 percent threshold.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
5 exchanges from our coverage · no referral links
KrakenCentralized · USDD/USDVolume 24h$18.3KReliability7.4Halal productNo halal product
GateCentralized · USDD/USDTVolume 24h$17.58KReliability5.9Halal productNo halal product
BingXCentralized · USDD/USDTVolume 24h$55.2KReliability5.8Halal productNo halal product
KuCoinCentralized · USDD/USDTVolume 24h$1.61KReliability5.6Halal productNo halal product
MEXCCentralized · USDD/USDTVolume 24h$2.39KReliability4.7Halal productNo halal product
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Listings as of Sep 18, 2026
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