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Secret

Is Secret (SCRT) Halal or Haram?

AI Assisted Shariah Verdict
Last Update: 8/13/2026
Halal

SUMMARY

Secret Network is a neutral Layer 1 blockchain providing privacy-preserving smart contracts. The SCRT coin serves permissible utilities including gas fees, governance, and network-security staking, with no identified exposure to haram activities or impure revenue.

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SHARIAH
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Verdict by Activity

How you can hold and use SCRT

Buy & Hold

Halal

Buying and holding SCRT is permissible as it is the native asset of a neutral Layer 1 blockchain with lawful utility and no core haram business activities.

Native PoS Staking

Optional
Halal

Holders can delegate SCRT to validators to secure the dPOS network, earning a permissible share of dynamic inflation and transaction fees.

Shariah Component Breakdown

Shariah Analysis

Infrastructure — where it runs

Passed

The network operates as its own independent Layer 1 blockchain, serving as neutral, general-purpose infrastructure.

Application — what it does

Passed

The protocol provides general-purpose confidential computing infrastructure with no native lending, gambling, or haram industry exposures.

Asset — what you own

Passed

The token's primary utility is for transaction fees, governance, and native PoS network-security staking.

Property Status (Māl)

Passed

SCRT is a native protocol position with confirmed lawful use, ascertainable supply, and no discretionary freeze or mint authority.

Revenue Purity

Passed

Protocol revenue consists entirely of transaction fees, with no haram revenue share identified. Treasury interest exposure is unknown.

Legitimacy & Security

social presence

Passed

The project has an established history and an active community currently engaged in critical governance debates.

whitepaper

Passed

Official documentation and tokenomics are available and verifiable.

project audits

Caution

While security info is noted, the research does not name a completed independent audit, and the network suffered a $4.7 million bridge exploit in June 2026.

Team & Ecosystem

team background

Passed

The network is supported by multiple known independent development teams and entities, including Enigma and the Secret Foundation.

Detailed Shariah Report

Overview

Secret Network is an independent Layer 1 blockchain designed to enable privacy-preserving smart contracts using encrypted data. Its native coin, SCRT, is utilized to pay transaction (gas) fees, participate in decentralized governance voting, and secure the network through staking.

Why This Verdict

The Shariah compliance of a crypto asset is evaluated across a three-layer screen: the underlying infrastructure, the application it serves, and the asset itself. A failure at any layer renders the entire asset non-compliant. Secret Network passes the infrastructure and application layers because it operates as its own independent Layer 1 blockchain, serving as neutral, general-purpose infrastructure. Hosting third-party applications does not taint the native asset, as the base protocol itself has no native lending, gambling, or haram industry exposures. At the asset layer, SCRT qualifies as recognized digital property (Mal). It is a native protocol position with a confirmed lawful use, an ascertainable supply, and no centralized freeze or mint authority, meaning it represents an exclusive, protocol-recognized right of control that can be held and transferred. Based on this framework, buying and holding SCRT is permissible (Halal) because it is the native asset of a neutral blockchain with lawful utility and no core haram business activities. Additionally, the protocol offers an opt-in Native Proof-of-Stake (PoS) Staking mechanism. This mechanism is also permissible (Halal), as holders can delegate their SCRT to validators to secure the network, earning a lawful share of dynamic inflation and transaction fees.

Permissible Aspects

  • The underlying infrastructure is a neutral, general-purpose Layer 1 blockchain with no inherent exposure to haram industries.
  • Token utility is lawful, primarily functioning to pay transaction (gas) fees and participate in decentralized governance.
  • Protocol revenue is derived entirely (100%) from transaction fees paid by users to execute smart contracts and transfer assets.
  • The opt-in Proof-of-Stake (PoS) staking mechanism provides a permissible yield derived from network inflation and transaction fees.

Points of Caution

  • !While the protocol itself is neutral, it is a general-purpose smart contract platform; users should independently verify the compliance of any third-party decentralized applications (dApps) they interact with on the network.
  • !It is unknown whether the project's treasury (managed by entities like the Secret Foundation) earns interest from conventional banks or DeFi lending, though this does not directly impact the token holder.
  • !From a risk perspective, the network suffered a $4.7 million bridge exploit in June 2026, and research does not name a completed independent security audit.

Purification Note

Not applicable. The protocol's revenue consists entirely of transaction fees, and no impure income flows to the token holder from simply holding or staking SCRT. Therefore, no purification is required. Please note that final religious authority rests with a qualified scholar.

BOTTOM LINE

Secret (SCRT) is the native coin of a neutral Layer 1 blockchain focused on privacy-preserving smart contracts. Both buying and holding the asset, as well as participating in its native Proof-of-Stake staking, are permissible as they rely on lawful utility and transaction fees. There is no identified exposure to interest-bearing lending, gambling, or other haram activities at the protocol level.

How this verdict was reached

This is not an opinion issued by ShariaQuant. It is the output of a documented screening methodology applied to researched facts about Secret (SCRT), and every row above states the specific evidence that drove it — so the reasoning can be examined rather than taken on trust.

The framework screens three layers — the infrastructure an asset runs on, the application it serves, and the asset itself — and separately tests whether the token qualifies as recognised property (māl): that it presently exists, has an ascertainable supply, can be held and transferred, and carries a genuine lawful use. A failure at any single layer fails the asset.

Revenue-purity thresholds follow the AAOIFI screening standard: non-compliant income below 5% of revenue is tolerated and purified, while 5% or above fails the screen.

The framework follows published scholarship rather than in-house opinion. Treating a digital asset as a right (ḥaqq) that becomes recognised property (māl) only on stated conditions follows “Is Crypto Halal? The Definitive Shariah Guide to Crypto and Digital Assets” by Mufti Faraz Adam (Amanah Advisors, 2026), which reproduces the conditions identified by Mufti Taqi Usmani. Financial thresholds follow the AAOIFI screening standard. The rulings we track are collected in the fatwa library.

AAOIFI has not reviewed, approved or endorsed this report or ShariaQuant, and no scholar named in our methodology has reviewed this individual verdict. This is analysis, not a fatwa — final religious authority rests with a qualified scholar.

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