Tether's Gold Token Gets Shariah Compliant Certification

Tether's gold-backed token XAUt has achieved Shariah compliance certification, marking a significant milestone for Islamic finance markets. This development allows financial institutions to offer compliant digital gold products through blockchain technology.

The certification was issued by Amanah Advisors after a thorough evaluation of XAUt's operational framework and underlying gold reserves. The assessment verified that the token adheres to Islamic financial guidelines governing asset-backed instruments, ensuring that it excludes interest-bearing mechanisms, leveraged positions, and speculative derivative instruments.

XAUt tokens correspond directly to physical gold holdings stored in secure Swiss vault facilities, providing transparent ownership rights to investors. This approach aligns with Islamic finance principles prioritizing tangible assets over synthetic or derivative products.