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Tether's $3.3B Gold Token XAUt Wins Shariah Approval for Islamic Finance
Tether's gold-backed token XAUt received Shariah certification from Amanah Advisors, opening the door to Islamic banks and investors seeking compliant gold exposure. The token holds over $3.3B in reserves.
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Tether's gold-backed token XAUt has received Shariah certification from Amanah Advisors. The approval gives the company a clearer route to Islamic financial institutions and investors seeking compliant exposure to physical gold.
Amanah Advisors said the token's structure meets key Islamic finance requirements. XAUt is fully backed by physical gold. The token carries no interest or leverage. Reserve arrangements are transparent, the adviser said. Each token represents ownership of one troy ounce of gold held in Swiss vaults, Tether said.
Shariah certification is often a prerequisite for banks, asset managers, family offices and individual investors operating under Islamic finance rules. These investors generally require products to avoid interest-based returns, excessive uncertainty and unsupported financial claims.
Tether expects the certification to drive adoption across the Gulf Cooperation Council, South Asia and parts of Africa. Islamic financial products are widely used in those regions. The opportunity extends beyond retail investors buying small amounts of tokenized gold. Islamic banks, investment companies and wealth managers may also consider digital gold products when they can verify the underlying structure meets their compliance requirements, Tether said.
XAUt offers exposure to physical gold without the need to store or transport bullion directly. The token can be transferred onchain. Ownership moves through digital asset infrastructure while remaining tied to a specific quantity of vaulted gold. This structure may appeal to investors who want gold's defensive characteristics. They also require faster settlement and easier divisibility than traditional bars or coins provide.
Certification does not guarantee institutional adoption. The approval removes one of the main barriers for investors that cannot hold products without formal Shariah approval. The next test is whether Islamic financial institutions treat tokenized gold as a practical investment product rather than a niche digital asset.