28.07.2026 13:11
Tether's gold-backed token XAUt has received a sharia compliance certificate from Amanah Advisors. This step could expand access to the token for Islamic financial institutions and investors seeking sharia-compliant exposure to physical gold.
According to the document, XAUt's structure was found to be compatible with the fundamental principles of Islamic finance. These principles include the token being fully backed by physical gold, not involving interest or leverage, and the reserves being transparent. According to Tether, each XAUt token represents one troy ounce of physical gold stored in vaults in Switzerland.
This document provides Tether with a clearer path to market XAUt to Islamic financial institutions and investors seeking Sharia-compliant investment products. Tether anticipates that the document will support adoption in markets where Islamic finance is widely used. The company listed the Gulf Cooperation Council countries, South Asia, and parts of Africa among these markets.
SHARIA-COMPLIANT CRYPTO PRODUCTS ARE BECOMING WIDESPREAD
Cryptocurrencies have long divided Islamic scholars. Debates focus on whether digital assets comply with Sharia principles that prohibit excessive uncertainty, speculation, and interest. As companies attempt to address these concerns, Sharia-compliant digital assets are beginning to emerge.
One early example in this field occurred in 2025. Bahrain-based AlAbraaj Restaurants Group adopted a Bitcoin treasury strategy and announced plans to develop Sharia-compliant financial instruments to expand access to Bitcoin across the Islamic world. More recently, in April, Palm Azgar Finance targeted the Islamic finance market, valued at over $3 trillion, by moving its Sharia-compliant stablecoin PUSD to the ADI Chain network. PUSD became the second stablecoin available on the network, allowing institutions to settle transactions on the same infrastructure using either a dollar-pegged asset or a dirham-based token. Meanwhile, Dubai stands out as a leading crypto hub in the Middle East and continues to expand its regulated digital asset market. The emirate's Virtual Assets Regulatory Authority (VARA) issued its 50th virtual asset service provider license this month, surpassing the number of licensed crypto companies in Hong Kong and Singapore.
WHAT IS TETHER XAUT?
XAUt is a cryptocurrency issued by Tether and backed by physical gold. Each token represents one troy ounce of gold stored in vaults in Switzerland, providing the holder with direct value based on physical gold. One of the largest tokenized gold products in the crypto market, XAUt offers access to the gold price on-chain. According to Tether's latest reserve report, as of March 31, the token was backed by over 707,000 troy ounces of physical gold, valued at more than $3.3 billion. Industry data shows the token's on-chain asset value rose from approximately $700 million in July 2025 to about $2.5 billion.