Tether’s XAUt earns Shariah certification

Amanah Advisors issued a Shariah certification for Tether’s gold-backed token XAUt, finding the token fully backed by physical gold, free of interest and leverage, and that each XAUt represents one troy ounce stored in Swiss vaults.

Amanah Advisors’ certification states XAUt’s structure aligns with Islamic finance requirements by ensuring physical backing, avoiding riba (interest) and leverage, and maintaining transparent reserves.

Tether’s most recent reserves report shows XAUt was supported by more than 707,000 troy ounces of physical gold, valued at over $3.3 billion as of March 31. The company reports the gold is held in Swiss vaults.

Onchain tracking provider RWA.xyz reports the token’s onchain asset value rose from about $700 million in July 2025 to roughly $2.5 billion, reflecting increased onchain holdings and activity.

Tether expects the Shariah designation will allow XAUt to be marketed to Islamic financial institutions and investors that require Shariah-compliant products, and to support adoption in Gulf Cooperation Council states, South Asia and parts of Africa.

Islamic finance guidelines prohibit interest, excessive uncertainty and speculative transactions. The certification ties the token directly to physical gold and documents reserve holdings to address those specific requirements.

Market participants have introduced Shariah-compliant digital assets in recent years. In 2025, Bahrain-based AlAbraaj Restaurants Group adopted a Bitcoin treasury strategy and planned Shariah-compliant instruments. In April, Palm Azgar Finance expanded its Shariah-compliant PUSD stablecoin to ADI Chain to serve the Islamic finance market, which industry estimates value at more than $3 trillion.

Regional regulation has also advanced crypto activity. Dubai’s Virtual Assets Regulatory Authority issued its 50th virtual asset service provider license earlier this month, placing the emirate ahead of Hong Kong and Singapore in the number of licensed crypto firms by regulatory counts.

XAUt is one of the largest tokenized gold products in the crypto market. Amanah Advisors’ certification documents the token’s compliance with specific Shariah criteria and supports Tether’s effort to present XAUt as an option for investors and institutions seeking gold exposure on blockchain infrastructure.