Zakat When Crypto Is Pledged for a Loan

Short answer: (1) Pledged bitcoin is still your property — a pledge does not block zakat; count its market value on your zakat day. (2) The borrowed stablecoins in your hands are wealth under your control — they enter the reckoning too; debt does not lift zakat from wealth in hand (with the allowance of deducting the imminently due installment). (3) If the loan bears interest (fixed extra repayment), it is riba — the contract itself is impermissible; repent and exit it quickly. Details: Pledging (rahn) is a valid contract — the Prophet ﷺ himself pawned his armour; but the pledgee never owns the collateral, so its zakat stays on the owner. If the platform liquidates your collateral, that portion leaves your reckoning from that day. In a cash crunch, payment on pledged wealth may be deferred — the liability remains owed. Evidence: Quran 2:283 and Sahih al-Bukhari 2068 (pledges); Quran 9:103 (zakat follows ownership); Quran 2:275 and Sahih Muslim 1598 (riba); Shaykh al-Uthaymin that debt does not prevent zakat. For complex individual cases, consult a qualified scholar.