Tethers XAUt gold token receives Shariah certification
Tethers XAUt gold token has received Shariah certification from Amanah Advisors, a move that could expand access among Islamic financial institutions and investors seeking Shariah-compliant exposure to physical gold. The certification confirms XAUt’s structure meets key Islamic finance principles, including full gold backing and no interest.
Key Takeaways
- Amanah Advisors certified Tether’s XAUt as Shariah-compliant for Islamic finance use.
- Each XAUt token represents one troy ounce of physical gold stored in Swiss vaults.
- Tether expects adoption support across the GCC, South Asia and parts of Africa.
- Reserves showed more than 707,000 troy ounces of gold worth over $3.3 billion as of March 31.
- Onchain asset value rose from about $700 million in July 2025 to roughly $2.5 billion.
The certification gives Tether a clearer path to market its gold-backed token to institutions that require Shariah-compliant products. For more market alerts, visit our Fintech & Crypto Alerts hub.
What does the Shariah certification cover?
According to Cointelegraph, Amanah Advisors found XAUt’s structure complies with key Islamic finance principles. Those include full backing by physical gold, the absence of interest and leverage, and transparent reserves.
Tether says each XAUt token represents one troy ounce of physical gold stored in Swiss vaults. That asset link is central to the review, which focuses on real backing and avoiding interest-based structures.
Why does this matter for Islamic finance access?
Islamic financial institutions and investors often need products that meet Shariah rules before they can allocate capital. The designation is designed to expand access to Tether’s gold-backed token among those buyers seeking compliant exposure to physical gold.
Tether said it expects the certification to support adoption in markets where Islamic finance is widely used, including the Gulf Cooperation Council, South Asia and parts of Africa. Cryptocurrencies have long divided Islamic scholars over uncertainty, speculation and interest, so certified gold-backed tokens aim to address those concerns.
How large is Tethers XAUt gold token now?
XAUt is one of the largest tokenized gold products in the crypto market. Tether’s latest reserves report showed the token was backed by more than 707,000 troy ounces of physical gold worth over $3.3 billion as of March 31.
RWA.xyz data cited by Cointelegraph shows the token’s onchain asset value climbed from about $700 million in July 2025 to roughly $2.5 billion. That growth underscores rising demand for tokenized gold ahead of the Shariah push.
Are other Shariah-compliant crypto products emerging?
Momentum is building beyond gold. In 2025, Bahrain-based AlAbraaj Restaurants Group adopted a Bitcoin treasury strategy and said it planned to develop Shariah-compliant instruments to broaden Bitcoin access across the Islamic world.
In April, Palm Azgar Finance expanded its Shariah-compliant PUSD stablecoin to ADI Chain, targeting the more than $3 trillion Islamic finance market. Dubai’s Virtual Assets Regulatory Authority also recently issued its 50th virtual asset service provider license, signaling a deepening Middle East crypto hub.