Key Takeaways:
The certification opens a $3.9 trillion Islamic finance market to tokenized gold for the first time.
Tether's gold-backed token XAU₮ received Shariah compliance certification from Amanah Advisors on July 27, enabling Muslim investors to access digital gold through a structure that meets Islamic finance principles.
"Gold has always represented stability and trust across cultures and generations," Paolo Ardoino, chief executive officer of Tether, said. "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."
The certification, led by Mufti Faraz Adam of Amanah Advisors, confirms that XAU₮ meets key Shariah requirements including real ownership of physical gold held in Swiss vaults, clear and verifiable asset backing, no riba (interest), and no leverage or speculative derivatives. Each XAU₮ token represents direct ownership of one troy fine ounce of gold on a London Good Delivery bar, issued by TG Commodities, S.A. de C.V. The allocated gold is identifiable by serial number, purity, and weight, and is redeemable for physical gold.
Islamic finance represents one of the fastest-growing segments of global finance, with assets estimated at $3.9 trillion, while gold remains a cornerstone asset across Muslim-majority markets. Until now, few digital products have successfully aligned modern asset infrastructure with established Shariah frameworks. The certification opens 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.
Tether expects the certification to support XAU₮ expansion across GCC countries where Islamic finance structures are well established, South Asia and parts of Africa where gold remains a trusted savings asset and digital finance adoption is accelerating, and global financial centers supporting Islamic finance desks. Amanah Advisors will continue working with Tether to develop governance frameworks for XAU₮ acquired through secondary markets.
The certification marks a milestone for tokenized real-world assets, demonstrating that blockchain-based financial products can align with long-established cultural and institutional frameworks. For more than 1,400 years, gold has played a foundational role in Islamic finance as a store of wealth. XAU₮ connects blockchain infrastructure directly to physical gold ownership, expanding accessibility without changing the underlying principles that have defined gold's role for centuries.
Tether plans to support the rollout with multilingual educational resources and regional communication initiatives tailored to institutional and retail audiences across target markets.
This article is for informational purposes only and does not constitute investment advice.
