Tether's Gold Token Wins Shariah Approval for Islamic Markets

Tether's gold-backed token XAUt has secured Shariah certification from Amanah Advisors, expanding its potential customer base beyond crypto traders. This approval gives Tether a clearer route to reach Islamic financial institutions and investors seeking compliant exposure to physical gold.

The certification ensures that XAUt meets key Islamic finance requirements, including full backing by physical gold, absence of interest and leverage, and transparent reserve arrangements. Each token represents ownership of one troy ounce of gold held in Swiss vaults, according to Tether.

Tether expects the certification to support adoption across the Gulf Cooperation Council, South Asia, and parts of Africa, where Islamic financial products are widely used. The approval can also appeal to investors who want the defensive characteristics of gold but require faster settlement and easier divisibility than traditional bars or coins provide.