Tether’s XAUt gold token receives Shariah certification to expand Islamic finance access
Tether's gold-backed token XAUt has received Shariah certification from Amanah Advisors, potentially expanding its access to Islamic financial institutions and investors seeking Shariah-compliant gold exposure. The certification confirms XAUt's compliance with key Islamic finance principles, including full backing by physical gold, no interest or leverage, and transparent reserves. Each token represents one troy ounce of gold stored in Swiss vaults.
This move provides Tether a clearer path to market XAUt in regions where Islamic finance is prominent, such as the Gulf Cooperation Council, South Asia, and parts of Africa. XAUt is one of the largest tokenized gold products, backed by over 707,000 troy ounces of physical gold worth more than $3.3 billion as of late March. Its on-chain value has grown significantly from about $700 million in July 2025 to roughly $2.5 billion.
The development is part of a growing trend of Shariah-compliant crypto products aimed at addressing historical scholarly debates about digital assets' compliance with Islamic principles prohibiting excessive uncertainty and interest. Other examples include initiatives by Bahrain's AlAbraaj Restaurants Group and Palm Azgar Finance's PUSD stablecoin. Meanwhile, Dubai continues to solidify its position as a leading crypto hub in the Middle East.
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