Tether's Gold Token Wins Shariah Approval, Expanding Digital Gold Across Islamic Finance

Tether has secured Shariah certification for its gold-backed token XAU₮, marking a significant milestone in the development of real-world asset-backed tokens. The certification was granted by Amanah Advisors, an Islamic finance advisory firm headed by Mufti Faraz Adam.

XAU₮ is built on a blockchain and backed by 100% physical gold held in Swiss vaults. Each token represents one troy ounce of actual gold, making it a transparent and secure way to invest in gold without breaking Shariah rules.

The certification confirms that XAU₮ meets the principles of Islamic finance, including actual ownership of physical gold, transparency of reserves, no interest-based structure (riba), and no speculative derivatives. This opens up new opportunities for banks and institutions to access compliant digital gold and expand into the growing market of Islamic finance.