SKN | Tether’s Gold-Backed XAUt Token Earns Shariah Certification to Expand Islamic Crypto Finance

Key Points

• Tether’s gold-backed token XAUt has received Shariah certification from Amanah Advisors, confirming its compliance with key Islamic finance principles.
• The certification could expand XAUt’s adoption among Islamic financial institutions and investors seeking Shariah-compliant exposure to physical gold.
• Each XAUt token is backed by one troy ounce of physical gold stored in Swiss vaults, with more than 707,000 ounces supporting the token as of March 31.
• The move reflects growing demand for Shariah-compliant digital assets as blockchain technology continues to gain traction in Islamic finance.

Tether Secures Shariah Certification for XAUt

Tether has announced that its gold-backed digital asset, XAUt, has received Shariah certification from Amanah Advisors, opening the door for broader adoption across Islamic financial markets.

The certification confirms that XAUt’s structure aligns with key principles of Islamic finance, including full backing by physical assets, the absence of interest-based mechanisms and leverage, and transparent reserve management.

The milestone positions XAUt as one of the few tokenized real-world assets designed to meet the requirements of investors and institutions seeking Shariah-compliant investment products.

Physical Gold Backing Supports Compliance

According to Tether, every XAUt token represents ownership of one troy ounce of physical gold securely stored in Swiss vaults.

The company said its latest reserve report showed that more than 707,000 troy ounces of physical gold, valued at over $3.3 billion, backed the token as of March 31.

By maintaining full physical backing and transparent reserves, XAUt satisfies important Islamic finance requirements that emphasize tangible asset ownership and discourage excessive uncertainty or speculative financial structures.

Expanding Access Across Islamic Markets

The Shariah certification is expected to strengthen XAUt’s appeal across regions where Islamic finance plays a significant role.

Tether believes the certification will facilitate broader adoption among financial institutions and investors in the Gulf Cooperation Council (GCC) countries, South Asia and parts of Africa, where demand for Shariah-compliant financial products continues to grow.

The certification also provides Islamic financial institutions with greater confidence when evaluating blockchain-based investment products that comply with established religious and financial standards.

Tokenized Gold Market Continues to Grow

XAUt remains one of the largest tokenized gold products available in the digital asset market.

Blockchain data indicates that the token’s onchain asset value has expanded significantly over the past year as institutional and retail interest in tokenized real-world assets continues to increase.

Tokenized gold combines the price exposure of physical precious metals with the efficiency, transferability and accessibility of blockchain technology, allowing investors to hold fractional ownership without taking physical delivery of bullion.

The sector has become an increasingly important segment of the broader real-world asset (RWA) tokenization market.

Islamic Finance Embraces Digital Assets

The certification reflects a broader trend toward developing blockchain products that comply with Islamic finance principles.

While cryptocurrencies have generated differing opinions among Islamic scholars due to concerns surrounding speculation and uncertainty, financial institutions have increasingly introduced Shariah-compliant digital asset products designed to meet religious requirements.

Recent initiatives have included Shariah-compliant stablecoins, Bitcoin-focused treasury strategies and blockchain-based financial infrastructure tailored to Islamic financial markets.

These developments demonstrate how blockchain technology is gradually being adapted to serve one of the world’s largest financial sectors while remaining consistent with Islamic financial principles.

Outlook

Tether’s Shariah certification for XAUt represents an important step in expanding the reach of tokenized real-world assets within Islamic finance. By combining fully backed physical gold with blockchain technology and meeting established Shariah standards, XAUt is positioned to attract greater institutional and retail participation across key Islamic markets. As demand for compliant digital financial products continues to grow, tokenized assets may play an increasingly significant role in bridging traditional Islamic finance with the evolving digital economy.