Tether's gold-backed token, XAUt, has received a key certification that could expand its reach into Islamic finance markets. This move highlights the growing trend of Shariah-compliant crypto products
Tether’s XAUt gold token has recently been certified as compliant with Shariah principles by Amanah Advisors, marking an important step for the platform in expanding access to its gold-backed digital assets within Islamic financial institutions and markets. This certification ensures that each XAUt token is fully backed by physical gold stored in Swiss vaults and meets key requirements such as no interest or leverage and transparent reserves.
The certification process involved a thorough review of XAUt’s structure, confirming it adheres to the principles required for Shariah-compliant investments. As one of the largest tokenized gold products on the market, with over 707,000 troy ounces of physical gold backing its tokens as of March 31, Tether is well-positioned to capitalize on this new certification.
This development comes amidst a broader trend in the crypto industry towards Shariah-compliant products. In 2025, Bahrain-based AlAbraaj Restaurants Group adopted a Bitcoin treasury strategy and plans to develop Shariah-compliant financial instruments for wider use across Islamic regions. More recently, Palm Azgar Finance expanded its Shariah-compliant PUSD stablecoin onto the ADI Chain, targeting over $3 trillion in the Islamic finance market.
The certification of XAUt is particularly significant given Tether’s substantial backing and the growing demand for Shariah-compliant investment products. The Gulf Cooperation Council, South Asia, and parts of Africa are expected to see increased adoption as a result of this move. Additionally, Dubai has emerged as a leading crypto hub in the Middle East with its Virtual Assets Regulatory Authority issuing more than 50 virtual asset service provider licenses.
This certification underscores Tether’s commitment to meeting diverse regulatory requirements while expanding into new markets. It also reflects the broader trend towards integrating traditional financial principles and practices within the blockchain ecosystem, catering to a wider range of investors who adhere to Shariah guidelines.
Traders should closely monitor how this certification impacts XAUt's trading dynamics in Islamic finance markets as well as its potential for cross-market adoption. The expansion into these regions could provide new opportunities for both Tether and other Shariah-compliant crypto assets.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.