Tether Gold (XAU₮), the gold-backed digital asset issued by Tether, has received Shariah compliance certification from Amanah Advisors, marking a development at the intersection of blockchain technology, Islamic finance, and tokenized real-world assets.

The certification confirms that XAU₮ follows Islamic finance principles, allowing Muslim investors and institutions to access digital ownership of physical gold through a transparent and compliant framework.

Source: Tether

Tether XAU₮ Receives Islamic Finance Approval

The certification, led by Mufti Faraz Adam of Amanah Advisors, confirms that XAU₮ meets key Shariah requirements, including real ownership of physical gold, transparent asset backing, and the absence of interest-based mechanisms, leverage, and speculative derivatives.

XAU₮ is a unit that represents one entire troy ounce of gold, and it comes from a London Good Delivery bar stored in Switzerland. That means every token of XAU₮ is linked to a real bar of gold by serial number, purity, and weight.

Gold has long been regarded as a store of value in Islamic finance, where it has played that role successfully for more than 1,400 years. However, holding gold presents practical challenges, including storage and the transfer of value across borders.

Tether Gold combines the stability of physical gold with the speed of blockchain technology. XAU₮ is not simply a tracker for the value of gold; it represents actual ownership of physical gold.

The project also reflects a broader trend in which tangible assets tokenized on blockchain are increasingly viewed as building blocks for the evolution of financial markets.

ADGM Recognition Supports Institutional Adoption

As Tether announced on July 20, XAU₮ received the designation of Accepted Spot Commodity with the Abu Dhabi Global Market (ADGM), and Shariah compliance is the next step. This will allow firms registered with ADGM to offer services related to the gold-anchored currency.

Source: Tether

The move strengthens the company’s presence in the UAE’s cryptocurrency sector, especially after ADGM approved USD₮ as an accepted fiat referenced token.

Taken together, these developments improve XAU₮’s standing with regulators and institutions, particularly in jurisdictions where compliance with standards is especially important.

Tokenized Assets Continue to Gain Momentum

Tokenized real-world assets have become more prevalent and are currently valued at more than $31 billion globally. Banks are evaluating blockchain-based versions of existing financial assets, including commodities, bonds, and other instruments.

XAU₮ may support a range of services, including halal saving schemes, wealth preservation services, collateralization services, and trade finance services. The certification could also support adoption in GCC countries, South Asian countries, African countries, and other regions where gold remains a credible financial asset.

What Happens Next for XAU₮?

According to Paolo Ardoino, the head of Tether, the certification expands access to digital gold while keeping it aligned with Islamic finance standards and blockchain transparency.

As digital assets move toward practical use cases, tokens backed by tangible value have become more prominent. With both Shariah compliance and regulatory recognition, XAU₮ now sits at the intersection of physical gold ownership and digital finance, with a clearer path for institutions that require both asset backing and compliance review before offering related services.

Its future adoption will depend on partnerships with banks and other financial institutions, fintech companies, and investors seeking access to physical gold through blockchain technology.

Also Read: Tether Gold Price Holds Near $4K After Bullish ADGM Recognition