Tether's gold-backed token XAUt receives Shariah certification
XAUt becomes a compliant investment tool for Islamic finance institutions.
1XAUt's Sharia Compliance
Tether's gold-backed token XAUt obtained Shariah certification from Amanah Advisors, aligning it with Islamic finance principles. The certification evaluated criteria such as full physical gold backing and the absence of interest or leverage. This move aims to expand access to digital assets in the Islamic finance world.
2Token Technical Details
Each XAUt token represents one troy ounce of physical gold stored in Swiss vaults. Tether's latest reserve report shows the token was backed by 707,000 troy ounces of gold worth $3.3 billion as of March 31. RWA.xyz data indicates the token's onchain asset value grew from $700 million in July 2025 to $2.5 billion.
3Regional Market Targets
Tether expects the certification to drive adoption in the Gulf Cooperation Council, South Asia, and parts of Africa where demand for Shariah-compliant investments is rising. XAUt's certification aims to offer a new alternative for institutional investors in these regions.
4Growth of Islamic Crypto Market
The compliance of crypto assets with Islamic finance rules has long been debated. Developments like AlAbraaj's Bitcoin treasury strategy in 2025 and Palm Azgar's expansion of PUSD stablecoin in April have increased activity in this space. Dubai's regulatory steps are also strengthening the regional crypto ecosystem.
5Competition and Market Position
XAUt stands out as one of the largest tokenized gold products in the crypto market. Regulatory developments in Dubai, including VARA issuing its 50th license, are shaping the competitive landscape. PUSD stablecoin's integration with ADI Chain has created another alternative in the Islamic finance market.
6Global Financial Inclusion
XAUt's certification is a significant step for investors with limited access to traditional finance. The rise of Shariah-compliant digital assets highlights the potential of this $3 trillion+ market. Tether's move supports blockchain technology's mission to provide financial inclusion.