Tether’s gold-backed token, XAUt, has received Shariah certification from Amanah Advisors, which could expand access to the token among Islamic financial institutions and investors seeking Shariah-compliant exposure to physical gold.
The certification demonstrated the XAUt structure is compliant with key principles of Islamic finance, including full backing of physical gold, no interest or leverage, and see-through reserves. According to Tether, each XAUt token represents one troy ounce of physical gold stored in Swiss vaults.
This designation provides Tether with a clearer path to sell XAUt to Islamic financial institutions and investors who require Shariah-compliant investment products. Tether said it expects the certificate to lend a hand adoption in markets where Islamic finance is widely used, including the Gulf Cooperation Council, South Asia and parts of Africa.
XAUt is one of the largest tokenized gold products on the cryptocurrency market. Latest Tether reserves report showed that the token was backed by over 707,000 troy ounces of physical gold worth over $3.3 billion as of March 31.
According to RWA.xyz data, the token’s onchain asset value has increased from about $700 million in July 2025 to about $2.5 billion.
Tether tokenized gold. Source: RWA.xyz
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Shariah-compliant crypto products are gaining popularity
Cryptocurrencies have long divided Islamic scholars, with debates centering on whether the digital asset complies with sharia principles that prohibit excessive uncertainty, speculation and interest. As companies seek to address these concerns, Shariah-compliant digital assets have begun to emerge.
One early example occurred in 2025, when Bahrain-based AlAbraaj Restaurants Group adopted a Bitcoin (BTC) treasury strategy and stated that it planned to develop Sharia-compliant financial instruments to expand access to Bitcoin across the Islamic world.
Most recently, in April, Palm Azgar Finance extended its Shariah-compliant stablecoin PUSD to ADI Chain, targeting the over $3 trillion Islamic finance market. PUSD became the second stablecoin available on the network, allowing institutions to settle transactions using a dollar-pegged asset or a dirham-denominated token on the same infrastructure.
Meanwhile, Dubai has emerged as a leading cryptocurrency hub in the Middle East as it continues to develop its regulated digital asset market. Earlier this month, the emirate’s Virtual Assets Regulatory Authority (VARA) issued its 50th virtual asset services provider license, surpassing the number of licensed crypto firms in Hong Kong and Singapore.
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