Tether announced that its gold-backed token, XAUt, has received Shariah certification, opening new doors in Islamic finance markets.
The approval was granted by Amanah Advisors after verifying XAUt’s physical gold reserves stored in Swiss vaults and its transparent reserve management.
This certification confirms XAUt complies with core Islamic finance principles by avoiding interest, use, and speculative financial instruments.
Each XAUt token corresponds directly to ownership of physical gold, ensuring asset-backed security without derivative exposure.
Tether expects this approval to accelerate adoption in the Gulf Cooperation Council countries, South Asia, and African regions where Islamic finance systems are strong.
Financial institutions can now integrate XAUt into their Shariah-compliant digital asset services, including halal savings products and tokenized trade finance.
The move highlights blockchain's growing role in providing transparent and compliant access to real-world assets like gold.
Gold has traditionally been a valued store of wealth in Islamic finance, and XAUt bridges this tradition with modern blockchain technology.
As tokenized assets gain traction globally, XAUt’s certification adds a regulated choice tailored for Islamic financial markets.
To support this expansion, Tether plans to roll out multilingual educational materials and work with Amanah Advisors on governance standards for secondary markets.
