Tether’s gold-backed digital asset XAUT has received Shariah-compliant certification from Amanah Advisors, an independent Shariah advisory firm recognized globally. According to Tether, the certification confirms that XAUT is aligned with core principles of Islamic finance.

Tether said the certification allows Muslims worldwide to access ownership of physical gold through a structure designed to be fully Shariah-compliant. The stablecoin issuer described the development as a milestone at the intersection of tokenized real-world assets and Islamic finance, a segment where religious compliance, asset custody, and transparency are central to user and institutional adoption.

XAUT Meets Islamic Finance Requirements

To obtain the certification, Tether and the structure of XAUT had to satisfy several fundamental criteria under Islamic jurisprudence. These requirements include tangible asset backing, under which each XAUT token represents direct ownership of exactly one troy fine ounce of physical gold held in secure Swiss vaults.

The infrastructure supporting the gold-backed asset also avoids interest-based lending, borrowing, and yield-generating practices that would breach the Islamic prohibition on riba. Tether said the XAUT structure also excludes leverage and complex derivatives, addressing concerns over excessive uncertainty and gambling.

The company said XAUT maintains a fully traceable reserve system by linking allocated gold bars directly to unique serial numbers, weight allocations, and purity grades. For gold-backed tokens, that reserve traceability is a key part of distinguishing direct asset ownership from synthetic exposure.

Tether Cites Gold’s Role in Islamic Finance

Tether noted that gold has played a foundational role in Islamic finance as a store of wealth for more than 1,400 years. The company said the rapid digitization of global financial infrastructure is creating demand for assets that preserve traditional value while providing modern accessibility.

Paolo Ardoino, CEO of Tether, said gold has long represented stability and trust across cultures and generations. He added that, with XAUT now recognized as Shariah-compliant, Tether is expanding access to digital gold in a way that respects Islamic finance principles while using the transparency and efficiency of blockchain technology.

Tether expects the certification to support XAUT’s expansion across multiple jurisdictions. The company cited GCC countries, where Islamic finance structures are well established, as well as South Asia and parts of Africa, where gold remains a trusted savings asset and digital finance adoption is accelerating.