Tether’s gold token XAUT earns “Islamic Sharia compliance” certification! Snatches the global digital gold market among Muslims

The world’s largest stablecoin issuer Tether today (27) released its latest announcement, stating that its gold-backed digital asset Tether Gold (XAU₮) has officially received Shariah-compliant certification issued by Amanah Advisors. This certification confirms that XAU₮ fully meets the core principles of Islamic finance, opening up a new way to digitize holdings of physical gold in a compliant manner for Islamic banks worldwide, institutions, and individual Muslim investors.
(Background: Tether pushes into the Middle East with gold again! XAUT receives official certification from the Abu Dhabi Global Market)
(Additional context: USDT countdown to the two-year mark: GENIUS Act deadline closes in—can Tether’s dominance hold?)

As the tokenization of real-world assets (RWA) sweeps across global financial markets, Tether has successfully pushed its digital gold product into a vast market with strong potential. On July 27, Beijing time, Tether officially announced that its issued gold-backed digital asset XAU₮ has officially obtained Shariah-compliant certification issued by Amanah Advisors led by Mufti Faraz Adam.

No-interest physical backing, perfectly aligned with Shariah principles

For over 1,400 years, gold has always played a key role as a foundational store of wealth within the Islamic financial system. XAU₮ issued by Tether successfully combines the value of traditional gold with modern blockchain infrastructure—each fully backed XAU₮ represents “direct ownership” of London good delivery gold, a troy fine ounce, that is held in a Swiss vault.

The key to this certification is that the issuer TG Commodities, S.A. de C.V. has successfully demonstrated that its product structure avoids mechanisms prohibited under Shariah law. The certification confirms that the product meets strict requirements, including: true ownership of physical gold, clear and verifiable asset backing, absolutely no riba (interest), no leverage or speculative derivative instruments, and a highly transparent reserve structure. The official statement specifically emphasizes that XAU₮ is directly linked to ownership of physical gold, rather than creating non-compliant synthetic exposure.

Targeting the GCC and South Asia, opening a new institutional-level blue ocean

Islamic finance is widely recognized as one of the fastest-growing segments in global finance. Tether said that this Shariah certification will open up multiple new use cases for XAU₮, including integrating digital gold products for Islamic banks, Takaful (Islamic insurance) and halal savings, long-term wealth preservation strategies, tokenized trade financing, and meeting the needs of institutions seeking compliant gold market exposure.

In terms of market expansion, Tether expects this certification to strongly support XAU₮ expansion across GCC countries, where Islamic financial structures are more mature; across parts of South Asia and Africa, where gold is viewed as a trusted savings asset and digital finance adoption is accelerating; and even into global major financial centers.

Tether CEO Paolo Ardoino commented: “Gold has always represented stability and trust across cultures and generations. With XAU₮ now recognized as Shariah-compliant, we are expanding access to digital gold in a way that respects Islamic finance principles, while leveraging the transparency and efficiency of blockchain technology. In the future, Amanah Advisors will also continue to work with Tether to develop further practical guidance and governance frameworks for trading in the secondary market.”