Key facts
- Tether's gold-backed token XAUt has received Shariah certification from Amanah Advisors.
- The certification confirms XAUt adheres to Islamic finance principles, including full physical gold backing and no interest.
- Each XAUt token represents one troy ounce of physical gold stored in Swiss vaults.
- As of March 31, XAUt was backed by over 707,000 troy ounces of physical gold, valued at over $3.3 billion.
- The certification aims to expand XAUt's adoption among Islamic financial institutions and investors.
Tether's gold-backed token, XAUt, has obtained Shariah certification from Amanah Advisors, a development poised to broaden its accessibility to Islamic financial institutions and investors. This certification signifies that XAUt adheres to core Islamic finance tenets, such as being fully backed by physical gold, avoiding interest (riba) and excessive speculation, and maintaining transparent reserves.
Each XAUt token is equivalent to one troy ounce of physical gold held in Swiss vaults, as stated by Tether. This compliance is expected to facilitate Tether's marketing efforts for XAUt within regions with significant Islamic finance markets, including the Gulf Cooperation Council, South Asia, and parts of Africa.
As of March 31, XAUt was backed by over 707,000 troy ounces of physical gold, valued at more than $3.3 billion, according to Tether's latest reserves report. Data from RWA.xyz indicates that the token's on-chain asset value has grown substantially from approximately $700 million in July 2025 to around $2.5 billion.
The crypto space has seen increasing interest in Shariah-compliant products, addressing debates among Islamic scholars regarding the permissibility of digital assets. Notable examples include Bitcoin treasury strategies and the expansion of Shariah-compliant stablecoins like PUSD, which targets the vast Islamic finance market estimated at over $3 trillion.