Tether's Digital Gold Token Gains Shariah Compliance

Tether's gold-backed token, XAU₮, has been officially recognized as Shariah compliant by Amanah Advisors under the guidance of Mufti Faraz Adam. This endorsement confirms that XAU₮ meets the fundamental Sharia standards of ownership, transparency, and non-prohibited elements.

The certification is based on several verified conditions, including physical possession of gold, auditability, no interest component, no leverage, and full disclosure. These points align with established prohibitions against riba and excessive uncertainty in Islamic finance.

Tether's CEO, Paolo Ardoino, stated that 'Gold has always represented stability and trust across cultures and generations.' He added that XAU₮ now recognized as Shariah compliant will expand access to digital gold while respecting Islamic finance principles and leveraging the transparency of blockchain technology.

The token is expected to be initially focused on the Gulf Cooperation Council (GCC) states, where Islamic finance structures are in place at scale. Potential applications for XAU₮ include Islamic banks' offerings, takaful products, and endorsed savings products, as well as use as collateral in trade-related transactions.