Tether said on July 27 that its gold-backed digital asset XAUT has received Shariah compliance certification from Amanah Advisors.
The company said the certification creates a compliant digital gold investment channel for Muslim users worldwide, as well as Islamic banks and institutional investors. Tether added that the certification confirms XAUT meets core Islamic finance principles and allows users to hold physical gold in digitized form through blockchain infrastructure.
XAUT structure cleared under Islamic finance requirements
According to Tether, each XAUT token represents direct ownership of physical gold held in a Swiss vault. The token’s structure does not include interest (riba), leverage, or speculative derivatives.
Amanah Advisors said the issuer, TG Commodities, S.A. de C.V., meets Islamic finance requirements, including actual ownership of physical gold, transparent and verifiable asset reserves, no interest-based mechanism, no use of leverage or speculative derivatives, and a transparent reserve structure.
Tether points to demand across Islamic finance markets
Tether said gold has long played an important role in the Islamic financial system, and that XAUT is designed to connect the value of traditional gold with blockchain technology while improving global access to digital gold.
The company said the certification is expected to support XAUT adoption in Gulf Cooperation Council countries, South Asia, parts of Africa, and global Islamic finance centers. Tether said potential use cases include digital gold services at Islamic banks, halal-compliant savings products, wealth preservation solutions, and institutional gold allocation.