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Tether Gold, or XAUt, has received Shariah compliance certification from Amanah Advisors, making the gold-backed token available for use by investors and institutions that follow Islamic finance principles.
The certification could support XAUt distribution through Islamic banks, savings products and tokenized trade finance. It does not replace any regulatory licenses required to offer or trade the asset in individual markets.
Amanah Advisors Certifies XAUt’s Physical Gold Structure
Amanah Advisors, led by Islamic finance scholar Mufti Faraz Adam, certified the structure used by XAUt issuer TG Commodities. The review examined whether holders receive real ownership of physical gold and whether the backing can be clearly verified.
The assessment also found that the product does not use interest, leverage or speculative derivatives. Those features address core Shariah restrictions covering riba, excessive uncertainty and financial products that provide synthetic exposure without ownership of an underlying asset.
Each XAUt Represents One Fine Troy Ounce of Gold
Each full XAUt token represents ownership of one fine troy ounce of gold held in Swiss vaults on a London Good Delivery bar. Holders can identify the gold allocated to their blockchain address by serial number, purity, and weight.
That structure was central to the Shariah review because Islamic finance principles require clear ownership of the underlying asset. The certification applies to the product structure, while individual trading arrangements may still require separate review.
Tether Targets Islamic Banks and Trade Finance Providers
Tether expects the certification to support adoption across Gulf Cooperation Council countries, South Asia, parts of Africa and financial centers with established Islamic finance businesses. Potential uses include halal savings products, takaful, long-term wealth preservation, trade finance and collateral.
Banks and other financial institutions will still need their own approvals before offering XAUt services to customers. The certification therefore creates a pathway for Islamic finance adoption, but it does not automatically authorize distribution in every market.
Secondary-Market Transactions Require Further Shariah Guidance
Amanah Advisors will continue working with Tether on governance and practical guidance. That work will focus partly on purchases made through secondary markets.
The distinction matters because trading methods, custody arrangements and payment terms can affect whether a transaction remains Shariah compliant.
Institutions using XAUt in Islamic finance products will need to assess those operational details alongside the certification.
ADGM Recognition Follows Reserves Above 707,000 Ounces
The certification follows XAUt’s recognition as an Accepted Spot Commodity in Abu Dhabi Global Market on July 20. Firms operating in the financial center can support the token if they hold the required permissions and receive approval to use accepted spot commodities.
Tether’s latest reserves data showed more than 707,000 fine troy ounces backing XAUt. The next step is for banks, asset managers and payment providers to decide how the certified token can be integrated into regulated Islamic financial products.
