Tether's gold token gets Shariah-certified — finally, an asset that prays over its reserves

Tether's gold-backed token XAUt has received Shariah certification from Amanah Advisors, a designation the company says could open the token to Islamic financial institutions and investors requiring Shariah-compliant exposure to physical gold. The certification reviewed XAUt's structure against core Islamic finance principles, including full backing by physical gold, the absence of interest and leverage, and transparent reserves, according to Tether.

Each XAUt token represents one troy ounce of physical gold held in Swiss vaults. Tether's most recent reserves report showed the token was backed by more than 707,000 troy ounces of physical gold valued at over $3.3 billion as of March 31. Data from RWA.xyz indicated the token's onchain asset value has risen from approximately $700 million in July 2025 to roughly $2.5 billion.

The certification provides Tether with a clearer route to market XAUt in regions where Islamic finance is widely used, including the Gulf Cooperation Council, South Asia and parts of Africa. Tether said it expects the designation to support adoption among institutional and individual investors who require products that align with Shariah requirements.

The development comes as Shariah-compliant digital assets continue to expand. In 2025, Bahrain-based AlAbraaj Restaurants Group adopted a Bitcoin ($BTC) treasury strategy and announced plans to build Shariah-compliant financial instruments aimed at broadening Bitcoin access across the Islamic world. In April, Palm Azgar Finance extended its Shariah-compliant PUSD stablecoin to ADI Chain, positioning it for the more than $3 trillion Islamic finance market and making PUSD the second stablecoin available on the network, alongside a dirham-denominated token.

Dubai has simultaneously continued building its regulated digital asset sector. Earlier this month, the emirate's Virtual Assets Regulatory Authority (VARA) issued its 50th virtual asset service provider license, surpassing the number of licensed crypto firms in Hong Kong and Singapore. Cryptocurrencies have long divided Islamic scholars, with debates focused on whether digital assets comply with Shariah principles prohibiting excessive uncertainty, speculation and interest, and certifications like XAUt's are part of ongoing industry efforts to address those concerns.