- Tether’s XAUT has acquired a Shariah-compliant certification from Amanah Advisors.
- XAUT satisfied the fundamental Islamic finance criteria before receiving certification.
- Shariah certification will support XAUT’s expansion across multiple jurisdictions.
Tether’s gold-backed digital asset, XAUT, has reportedly received a Shariah-compliant certification from Amanah Advisors, an independent, globally recognized Shariah advisory firm. According to Tether, the certification confirms XAUT’s alignment with core Islamic finance principles.
Tether noted that through XAUT, Muslims worldwide can now access ownership of physical gold within a fully Shariah-compliant structure. The stablecoin firm considers the latest development a significant milestone that represents the intersection of tokenized real-world assets and Islamic finance.
XAUT Satisfies Fundamental Islamic Finance Criteria
It is worth noting that Tether and its asset structure had to satisfy several fundamental criteria under Islamic jurisprudence to earn Shariah certification. Some of the conditions include tangible asset backing, which requires every XAUT token to represent direct ownership of exactly one troy fine ounce of physical gold stored in secure Swiss vaults.
Notably, the underlying infrastructure for the gold-backed asset avoids interest-based lending, borrowing, or yield-generating practices that violate the ban on riba. Tether also ensured that the XAUT token structure prohibits leverage and complex derivatives, mitigating excessive uncertainty and gambling, while maintaining a fully traceable reserve by linking allocated gold bars directly to unique serial numbers, weight allocations, and purity grades.
Gold Represents Stability and Trust
Tether acknowledged gold’s foundational role in Islamic finance as a reliable store of wealth for more than 1,400 years, highlighting the rapid digitization of global financial infrastructure that is creating demand for assets that preserve traditional value while offering modern accessibility.
According to Paolo Ardoino, CEO of Tether, gold has always represented stability and trust across cultures and generations. He noted that with XAUT now recognized as Shariah-compliant, his firm is expanding access to digital gold in a way that respects Islamic finance principles while leveraging the transparency and efficiency of blockchain technology.
Tether projects that the latest certification will support the expansion of XAUT across multiple regions, including GCC countries where Islamic finance structures are well established, South Asia and parts of Africa, where gold remains a trusted savings asset and digital finance adoption is accelerating.
Related: ADGM Approves Tether’s XAUT as an Accepted Spot Commodity
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