Tether XAUt Gold Token Earns Shariah Certification, Expanding Islamic Finance Opportunities for U.S. Investors

Tether's XAUt gold token, a significant product in the tokenized gold market, has received Shariah certification from Amanah Advisors. This certification confirms XAUt's adherence to Islamic finance principles, including full backing by physical gold, absence of interest and leverage, and transparent reserves. Each token represents one troy ounce of physical gold stored in Swiss vaults.

This designation provides Tether a clearer path to market XAUt to Islamic financial institutions and investors who require Shariah-compliant investment products. The company anticipates this certification will drive adoption across key Islamic finance markets like the Gulf Cooperation Council, South Asia, and parts of Africa, potentially increasing demand for the tokenized asset.

The certification builds on a growing trend of Shariah-compliant digital asset development. Previously, in 2025, AlAbraaj Restaurants Group implemented a Bitcoin treasury strategy with plans for Shariah-compliant instruments. More recently, in April, Palm Azgar Finance expanded its PUSD stablecoin, targeting the substantial $3 trillion Islamic finance market. These initiatives highlight increasing efforts to integrate digital assets with Islamic financial principles.

The token's underlying physical gold reserves were valued at over $3.3 billion as of March 31, representing more than 707,000 troy ounces. Data from RWA.xyz shows XAUt's onchain asset value has grown from approximately $700 million in July 2025 to about $2.5 billion, indicating substantial growth in its market presence.

Dubai is also emerging as a significant crypto hub in the Middle East, with its Virtual Assets Regulatory Authority issuing over 50 virtual asset service provider licenses. This regulatory expansion, coupled with the push for Shariah-compliant digital instruments, positions the region as a growing force in the global digital asset landscape.