Tether's Gold Token Wins Shariah Approval, Opening Islamic Finance to Digital Gold

Tether has secured Shariah certification for its gold-backed token, XAU₮. This milestone brings XAU₮ to a growing market in Islamic finance, where digital assets are increasingly being considered as a viable alternative to traditional investments.

The certification was granted by Amanah Advisors, an Islamic finance advisory firm led by Mufti Faraz Adam. The token's adherence to Islamic financial principles means that Muslims can now achieve a digital exposure to physical gold without breaking Shariah rules.

XAU₮ is built on a blockchain and backed by 100% physical gold held in Swiss vaults, making it a secure and transparent investment option. With this certification, Tether aims to increase the use of blockchain in traditional finance and provide new opportunities for banks and institutions to access compliant digital gold.

The expansion of XAU₮ into Islamic finance is a significant step towards the tokenization of real-world assets, with financial institutions becoming more keen on the blockchain infrastructure. The provision of transparency, faster settlement cycles, and access across every global market has made tokenized commodity assets like gold increasingly popular.