Tether’s gold-backed digital asset XAUt has received Shariah certification from Amanah Advisors. The approval confirms that the token’s structure meets core principles of Islamic finance and positions it for wider use by banks, institutions and individual investors seeking compliant exposure to physical gold.

According to Tether, the certification establishes that XAUt is fully backed by allocated physical gold, contains no interest-based features, avoids leverage and maintains transparent reserve disclosures. Each XAUt token represents one troy ounce of physical gold stored in Swiss vaults. The token is issued by TG Commodities, S.A. de C.V.

Structure and Compliance Criteria

Amanah Advisors reviewed the token against Islamic finance standards. The assessment focused on tangible asset ownership, the absence of riba, the prohibition of leverage and speculative derivatives, and clear reserve transparency. Allocated gold bars are linked to unique serial numbers, weight allocations and purity grades, providing a direct claim on the underlying metal.

Tether stated that this design satisfies the requirements for real ownership of a physical commodity while eliminating elements that would conflict with Shariah guidelines. The company noted that gold has served as a store of wealth in Islamic finance for more than 1,400 years and that tokenized access now allows the same asset to move on blockchain rails without altering its physical backing.

Ardoino added that Shariah recognition enables the firm to expand access to digital gold in a manner that respects Islamic finance principles while using the transparency and efficiency of blockchain technology.

Reserve Backing and Market Growth

Tether’s most recent reserves report showed XAUt backed by more than 707,000 troy ounces of physical gold valued at over $3.3 billion as of March 31. Onchain data from RWA.xyz indicates the token’s asset value rose from approximately $700 million in July 2025 to roughly $2.5 billion, pointing to growing holdings across blockchain venues.

These figures place XAUt among the larger tokenized gold products in the crypto market. The combination of certified compliance and disclosed physical reserves is expected to lower barriers for institutions that previously faced structural concerns when evaluating digital gold products.

Regional Reach and Potential Use Cases

Tether anticipates the certification will support adoption in regions where Islamic finance is widely practiced, including the Gulf Cooperation Council countries, South Asia and parts of Africa. Potential applications include integration by Islamic banks, takaful providers, halal savings products, trade finance platforms and institutional portfolios that already treat physical gold as a core store of value.

The token may also serve as collateral in lending arrangements while retaining its physical gold backing. Tether has previously partnered with platforms that accept XAUt as collateral, extending its utility beyond simple ownership.

Broader Context for Compliant Digital Assets

Interest in structuring digital assets to meet Shariah requirements has increased in recent years. Earlier efforts include a Bahrain-based group that adopted a Bitcoin treasury strategy with plans for compliant instruments, and the expansion of a Shariah-compliant stablecoin onto additional blockchain networks targeting the multi-trillion-dollar Islamic finance market.

At the same time, regulatory frameworks in the Middle East continue to develop. Dubai’s Virtual Assets Regulatory Authority has issued dozens of licenses to virtual asset service providers, creating a regulated environment that can support distribution of compliant products such as XAUt.

With formal certification now in place, attention turns to whether Islamic financial institutions will incorporate the token into their offerings and whether reserve transparency and onchain activity continue to align with the standards that underpinned the approval.