Short answer
No major institution has ruled on staking. Analyses draw a distinction: locking up one’s cryptos to take a real part in validating a blockchain and receiving a reward linked to that service, which some scholars compare to payment for work or to a lease; and “earn” or lending products that pay a return on lent cryptos, which are interest-bearing loans and therefore excluded. For those who consider the cryptocurrencies concerned unlawful (Diyanet for those that meet its criteria, Dar al-Ifta of Egypt for bitcoin), the question does not arise.
What the institutions say
Official positions, with their reference. The badge sums up the institution’s position, not an opinion of Assabile.
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International Islamic Fiqh Academy Organisation of Islamic Cooperation, JeddahNo decision
The Academy has not reached a decision on cryptocurrencies themselves; staking has not been the subject of any resolution.
Resolution 237 (8/24), 2019
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Diyanet Presidency of Religious Affairs, Türkiye (High Council of Religious Affairs)Prohibited
Highly uncertain cryptocurrencies with no guarantee are not permitted; staking these cryptos is therefore even less so according to this view.
Fatwa of 04/12/2017
Positions are reported as they stand; other scholars may hold other views. Method and disclaimers
Two realities under one name
- Validation staking (proof of stake): you lock up tokens to run a validator, either yourself or by delegation; the network pays rewards for validated blocks, and you can lose part of your tokens if the validator is at fault. Some contemporary scholars see this as payment for a service rendered to the network, or a sharing of the result of an activity, rather than interest.
- Platforms’ “earn”, “savings” or lending products: you hand over your cryptos, the platform lends or invests them, and pays you an advertised rate. This is an interest-bearing loan; a fixed return on capital returned in identical form is the definition of riba.
The conditions set by those who accept it
- the cryptocurrency itself is considered lawful (see cryptocurrencies);
- the reward comes from actual validation, not from lending your tokens to third parties;
- the return is not guaranteed and you remain the owner of your tokens;
- the network does not serve unlawful activities.
This analysis is not an institutional decision: for a specific case, consult a scholar who understands how the network works technically.
Frequently asked questions
Is staking on Binance or Coinbase validation staking?
Not always: some “staking” offers are in fact lending or flexible-yield products. Read the terms: who holds the tokens, where does the return come from, and is it guaranteed?