Reserves - Palm USD

Shariah-compliant.
End to end.

No interest-bearing instruments. No commercial paper. No crypto collateral. Reserves are held in Commodity Murabaha, Sukuk, Wakala deposits, and Islamic-bank cash. The four core Shariah-compliant instruments, layered across four liquidity tiers from same-day callable to long-dated infrastructure.

Reserve composition · as of 31 Mar 2026Total · $2.9B

22%

Cash & Callable

33%

Murabaha

28%

Sukuk (mid)

17%

Sukuk (long)

Tier-1 · Cash & Callable

Same-day callable balances at tier-1 GCC custodians. Handles daily redemption flow.

Tier-2 · Commodity Murabaha

1-6 month commodity Murabaha and short-dated Shariah-compliant sovereign paper. Primary yield layer.

Tier-3 · Quasi-sovereign Sukuk

Quasi-sovereign Sukuk, AA-rated corporate Sukuk, and approved international fixed income.

Tier-4 · Long-dated Sukuk

Long-dated infrastructure Sukuk and approved international fixed income.

§ Tier-by-tier explainer

What each instrument actually is, and why it sits in the reserve.

Click any tier to expand. Plain-English explanations of every Shariah-compliant instrument layered into the PUSD reserve, including the structure, the role it plays, and the Shariah governance attached to it.

What it is: Same-day callable demand and short-notice deposits held with regulated GCC custodians, denominated in AED and SAR. Funds settle within the business day they are requested.
Why we hold it: The immediate liquidity layer. Daily redemption flow draws against this tier first. The dollar that comes off the chain is paid out of cash, not paper. Sized to cover several multiples of any rolling redemption window.
Risk profile: Counterparty risk on the custodian only. Zero duration risk. Fully callable on the same business day.
Shariah note: Held in non-interest-bearing structures (Wakala or current-account window). The Shariah Supervisory Board reviews each custody arrangement before activation. No riba.

Reference · AAOIFI Shariah Standard No. 19 (Wakala) · IFSB-1

What it is: A short-tenor (1-6 month) Islamic finance instrument structured as a deferred-payment commodity sale. The custodian buys an LME-eligible base commodity and immediately resells it to Palm at a marked-up deferred price. The mark-up is the economic yield. There is no interest.
Why we hold it: Principal yield layer. Murabaha gives short-dated exposure with predictable, accruing cash flow without crossing into a conventional debt rate. Rolls naturally into Tier 1 as it matures.
Risk profile: Short-dated (≤ 6 months), low duration risk, counterparty backed by the broker and custodian. Held to maturity; not marked to market.
Shariah note: One of the four classical structures recognised by every Shariah board. The commodity leg is real and auditable per transaction. The Shariah Supervisory Board signs the master Murabaha agreement and the monthly attestation.

Reference · AAOIFI Shariah Standard No. 8 (Murabaha) · IFSB-3

What it is: Asset-backed securities issued by sovereign-adjacent entities (sovereign-wealth-sponsored development banks, infrastructure funds, regulated utilities) where the holder owns a share of an underlying asset's cash flow rather than a debt claim. Sukuk is the Islamic-finance analogue of a bond, structured as ownership, not debt.
Why we hold it: Adds AA-rated credit quality and a yield premium over Tiers 1 and 2 without crossing into long-duration territory. Diversifies issuer exposure across the global Sukuk universe.
Risk profile: Issuer credit risk and rates risk. Investment grade, generally AA, mid-duration (1-5 years). Concentration capped per issuer.
Shariah note: Sukuk certificates represent ownership of an underlying asset or revenue stream. Returns are rent or revenue share, not interest. Each issue must carry an independent Shariah opinion before it qualifies for the reserve.

Reference · AAOIFI Shariah Standard No. 17 (Sukuk) · IFSB-7

What it is: Long-tenor Sukuk (5-30 year), often financing physical infrastructure (ports, transit, energy, utilities) where the holder shares in the project's revenue stream. Same Sukuk principle as Tier 3, applied to long-dated infrastructure finance.
Why we hold it: The base of the duration ladder. A small, deliberate allocation that captures the term premium without dominating the portfolio. Helps balance the short-dated bias of Tiers 1 and 2.
Risk profile: Long duration, mark-to-market sensitive to rates. Held under an explicit duration cap so it never exceeds a fixed share of the reserve. Hard ceiling, not a guideline.
Shariah note: Common in GCC infrastructure markets and traded on regulated Sukuk exchanges. Each issue undergoes the same Shariah opinion review as Tier 3 before allocation.

Reference · AAOIFI Shariah Standard No. 17 (Sukuk)

Six rules.
No exceptions.

§ 01

Full reserve, always.

Every PUSD in circulation is matched by ≥100% of cash or short-dated US dollar instruments. The target ratio is 101%. We never mint ahead of reserves.

§ 02

No rehypothecation.

Reserves cannot be lent, pledged, or posted as collateral. They sit in bankruptcy-remote accounts segregated from Palm's operating entities.

§ 03

Duration cap · 60 days.

Weighted average maturity of reserve assets is capped at 60 days. Today it is 22 days. This keeps the reserve liquid at par, even in a rate shock.

§ 04

Concentration cap.

No more than 75% of reserves may sit at any single custodian. No more than 50% at any single counterparty in the repo book.

§ 05

Redemption at par, T+0.

Whitelisted institutional holders can redeem at par within the same business day, up to $50M per day. Retail redeems via partner exchanges.

§ 06

Public, machine-readable.

A signed JSON reserve file at reserves.palmusd.com/v1 publishes alongside mainnet launch. Queryable, auditable, and identical to what custodians confirm.

Every dollar,
accounted for.

✓︎ Daily reporting

✓︎ Monthly attestation

Shariah-compliant.
End to end.

What each instrument actually is, and why it sits in the reserve.

Custody across three tiers.

Six rules.
No exceptions.

Twelve months.
Twelve reports.

Questions about the mechanics?

Every dollar,accounted for.

✓︎ Daily reporting

✓︎ Monthly attestation

Shariah-compliant.End to end.

What each instrument actually is, and why it sits in the reserve.

Custody across three tiers.

Six rules.No exceptions.

Twelve months.Twelve reports.

Questions about the mechanics?

Every dollar,
accounted for.

Shariah-compliant.
End to end.

Six rules.
No exceptions.

Twelve months.
Twelve reports.