Tether’s Gold-Backed Token XAUt Earns Shariah Certification

Tether’s gold-backed digital token, XAUt, has received Shariah certification from Amanah Advisors, opening the door for wider adoption among Islamic financial institutions and investors seeking gold exposure that aligns with religious guidelines.

What the Certification Covers

The certification confirmed that XAUt meets core Islamic finance requirements, including full backing by physical gold, no interest or leverage involved, and clear reserve transparency. Each token represents one troy ounce of physical gold held in Swiss vaults. Tether expects this recognition to boost adoption in regions where Islamic finance is common, such as the Gulf, South Asia, and parts of Africa.

Token Growth and Backing

XAUt ranks among the largest tokenized gold products available. Recent reserve data showed the token backed by over 707,000 troy ounces of gold, valued above $3.3 billion. Its onchain value has grown sharply over the past year, rising from roughly $700 million to about $2.5 billion.

Wider Shift Toward Shariah-Compliant Crypto

This move follows a broader trend of companies developing crypto products designed to meet Islamic finance principles, including a Shariah compliant stablecoin expanding to a new blockchain network earlier this year.