Tether‘s gold-backed token, XAUt, has obtained Shariah certification from Amanah Advisors, making it accessible to Islamic financial institutions and investors seeking compliant exposure to physical gold. Amanah Advisors is an established consultancy specializing in Shariah compliance assessments for financial products worldwide.
Shariah-compliant structure
Amanah Advisors reviewed XAUt and confirmed that its structure aligns with core tenets of Islamic finance. The evaluation cited the token’s full backing by allocated physical gold, its absence of interest and leverage, and transparency in its reserves as key factors supporting compliance with Shariah principles.
Each XAUt token is backed by one troy ounce of physical gold, which is held in vaults in Switzerland. Tether emphasized that this direct link to tangible assets fulfills important Islamic requirements for asset ownership and transparency.
XAUt’s structure, fully backed by physical gold and free from interest and leverage, meets Shariah standards and offers transparent reserves.
Mini dictionary: Amanah Advisors, an international consultancy specializing in Shariah auditing and certification for financial products, especially in Islamic finance markets.
Market expansion and adoption
The certification grants Tether a clearer route to promote XAUt among Islamic financial institutions and investors requiring Shariah-compliant options. Tether stated that this approval could foster broader adoption of XAUt in regions where Islamic finance is dominant, including the Gulf Cooperation Council, South Asia, and parts of Africa.
XAUt stands among the largest tokenized gold products in the crypto industry. According to Tether’s latest reserves report, as of March 31, the token was backed by more than 707,000 troy ounces of physical gold, with a market value exceeding $3.3 billion.
Blockchain analytics platform RWA.xyz reported that XAUt’s onchain asset value increased from nearly $700 million in July 2025 to about $2.5 billion, signaling significant user growth in tokenized gold assets.
| Date | Onchain Asset Value |
|---|---|
| July 2025 | $700 million |
| March 2026 | $2.5 billion |
Broader Islamic finance developments
Cryptocurrencies continue to spark debate among Islamic scholars, particularly regarding issues like uncertainty, speculation, and interest, all of which are forbidden in Islamic law. As a result, digital assets tailored to meet these principles are gradually emerging.
Bahrain-based AlAbraaj Restaurants Group introduced a Bitcoin (BTC) treasury strategy in 2025, stating plans to develop Shariah-compliant instruments that would enable wider access to Bitcoin within Islamic markets.
Institutions aiming to provide exposure to digital assets in Shariah-compliant formats are adapting products to meet rising demand in Islamic finance.
In April, Palm Azgar Finance expanded its PUSD stablecoin to ADI Chain, targeting the $3 trillion Islamic finance sector. PUSD joined another stablecoin on its network, enabling settlement in either dollar-pegged or dirham-pegged tokens.
Mini dictionary: Palm Azgar Finance, a fintech company specializing in Shariah-compliant stablecoins and digital asset solutions for Islamic finance markets.
Dubai strengthens its crypto position
Dubai has emerged as a key digital asset hub in the Middle East as local authorities accelerate the development of a regulated crypto sector. The Virtual Assets Regulatory Authority (VARA) recently granted its 50th license to virtual asset service providers, surpassing the number of licensed crypto firms in regional competitors such as Hong Kong and Singapore.
