Tether’s XAUT gold backed digital asset now shariah compliant

Tether, issuers of USDT USD backed stablecoin and XAUT, gold backed digital asset have announced that XAU₮, has officially received a Shariah compliance certification from Amanah Advisors, led by Mufti Faraz Adam. As per the announcement, the certification confirms that XAU₮ aligns with core Islamic finance principles, enabling Muslims worldwide to access physical gold ownership digitally within a fully shariah-compliant structure. The certification is expected to support the expansion of XAU₮ across GCC countries South Asia and parts of Africa, and global financial centers supporting Islamic finance desks and institutional adoption of tokenized assets.

Islamic Finance has considered gold as a reliable store of wealth for more than 1,400 years, and today there is a demand for assets that preserve traditional value in a digitized manner. Tether will support the rollout with multilingual educational resources and regional communication initiatives tailored to institutional and retail audiences.

Each XAU₮ token represents direct ownership of physical gold held in Swiss vaults. The structure avoids leverage, interest-based mechanisms, and speculative derivatives, reinforcing its position as a transparent, asset-backed digital representation of gold.

The Shariah certification confirms that TG Commodities, S.A. de C.V., as the issuer of XAU₮, meets key requirements, including, real ownership of physical gold, clear and verifiable asset backing, no riba (interest), no leverage or speculative derivatives and transparent reserve structure.

The certification of XAU₮ opens new opportunities for Islamic banks integrating digital gold offerings, takaful and halal savings products, long-term wealth preservation strategies, tokenized trade finance and collateral applications, and institutions seeking compliant exposure to gold markets.

Rather than creating synthetic exposure, XAU₮ connects blockchain infrastructure directly to physical gold ownership, expanding accessibility without changing the underlying principles that have defined gold’s role for centuries.

“Gold has always represented stability and trust across cultures and generations,” said Paolo Ardoino, CEO of Tether. “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.”

Amanah Advisors will continue to work closely with Tether to develop practical guidelines and governance frameworks to support the wider adoption of XAU₮ in a Shariah-compliant manner, particularly where XAU₮ is acquired through secondary markets.

The announcement comes as UAE Prypco, tokenization platform which started with real estate, announced it would be offering tokenized gold on its platform powered by Paxos Gold, using Paxos Gold (PAXG)