Tether Gold (XAU₮) has secured Shariah compliance certification from Amanah Advisors, allowing Muslim investors to engage with digital gold under Islamic finance principles for the first time. This certification confirms that each XAU₮ token represents direct ownership of a physical ounce of gold stored in Switzerland, free from interest and speculation.
The Shariah certification, led by Mufti Faraz Adam, ensures XAU₮ conforms to strict rules such as transparent asset backing and the absence of interest-based mechanisms. These standards make it suitable for Islamic financial institutions and individual investors looking for halal options.
Gold has been a trusted store of value in Islamic finance for over 1,400 years, but practical challenges like secure storage and cross-border transfers have limited access. Tether Gold combines physical gold’s stability with blockchain’s efficiency, offering a smooth solution for ownership and transfer.
The move follows XAU₮ receiving the status of Accepted Spot Commodity from Abu Dhabi Global Market (ADGM), which paves the way for regulated firms in the UAE to provide gold-backed digital asset services. With this, Tether strengthens its foothold in Middle Eastern crypto markets, alongside USD₮’s approval as an accepted fiat-referenced token by ADGM.
The global market for tokenized real-world assets has topped $31 billion, with increasing interest from banks in blockchain-based commodities and bonds. XAU₮’s certification unlocks potential for halal savings, wealth preservation, collateralization, and trade finance products compliant with Islamic law.
This content is for informational purposes and not financial advice.
