{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,29]],"date-time":"2026-07-29T14:11:19Z","timestamp":1785334279095,"version":"3.55.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/www.uspto.gov\/ip-policy\/copyright-policy\/copyright-basics"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>Purpose: To determine whether a Shariah-compliant oil-backed stablecoin is constructible, and if not, to characterise the compliant instrument that survives the constraints and quantify the peg-stability cost compliance imposes. Design\/methodology: This study executes: (1) a fiqh-constraint analysis grounded in AAOIFI Shari'ah Standards Nos. 10 (Salam and Parallel Salam), 18 (Possession\/Qabd), 20 (Sale of Commodities in Organized Markets), and 57 (Gold); (2) a diagnostic case study of two noncompliant instruments: Venezuela's Petro (a documented failure of possession and redemption) and OIL1 (Gulf Energy Exchange, announced January 2026, pending Central Bank of Bahrain approval), whose dual peg and dollar-stablecoin reserve instantiate the very contamination the framework rules out; and (3) a fully specified empirical strategy for measuring the compliance cost, combining peg-deviation and mean-reversion metrics, wavelet volatility decomposition, and a synthetic compliant counterfactual with self-exciting (Hawkes) arrival dynamics, benchmarked against the four-architecture stablecoin literature. Findings: A dollar-pegged oil stablecoin that relies on interest-bearing reserve assets, dollarstablecoin reserves, or derivative stabilisation is non-compliant on two independent grounds: interest-bearing contamination (riba) in the reserve leg, and debt-for-debt prohibitions if structured as a tradable salam claim. Within the constraints specified here, the surviving compliant form is a fully-reserved, possession-based (qabd hukmi), allocated oil-title token that floats with crude rather than pegging to fiat. Because oil is non-ribawi, this token escapes the sarf same-session constraints that burden gold tokens, making oil structurally easier to tokenise compliantly for continuous trading than gold. We characterise the cost of compliance as the stability forfeited by dropping the fiat peg and barring derivative stabilisation, and set out an empirical strategy to measure it. Because no compliant floating oil-title instrument yet trades, the paper reports one live comparator measurement (PAXG, an allocated gold token) and treats the oil-token compliance-cost measure as an illustrative protocol output from a synthetic counterfactual, not as a real-world estimate. The dual-pegged OIL1 announced by the Gulf Energy Exchange serves as a real-world counterexample of the non-compliant architecture rather than as a compliant exemplar. Originality: To the author's knowledge, this paper is among the first to offer a structured Shariah-compliance analysis of oil-backed tokens; it gives a systematic statement of the goldversus-oil ribawi asymmetry for tokenisation; it defines a compliance-cost measurement framework for a commodity-token design; and it offers a critical regulatory-gap reading of Bahrain's SIO module against an instrument announced in its own jurisdiction.<\/jats:p>","DOI":"10.2139\/ssrn.6854299","type":"posted-content","created":{"date-parts":[[2026,7,29]],"date-time":"2026-07-29T13:42:12Z","timestamp":1785332532000},"source":"Crossref","is-referenced-by-count":0,"title":["Shariah Integrity at the Reserve Layer Working Paper: Shariah Integrity at the Reserve Layer"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-8477-9393","authenticated-orcid":true,"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,7,29]],"date-time":"2026-07-29T13:42:12Z","timestamp":1785332532000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=6854299"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.6854299","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}