Tether's XAUT Earns Shariah Compliance Certification for Wider Islamic Finance Adoption
Tether, the firm behind the popular stablecoin USDT, has achieved a significant regulatory milestone. It has obtained Shariah compliance certification for its gold-pegged asset XAUT from Amanah Advisors' platform. This recognition is crucial as it validates that XAUT aligns with Islamic finance benchmarks.
The certification process ensures that XAUT meets key Islamic finance standards by maintaining transparency and verifiable asset support, while avoiding interest-based mechanisms, speculative derivatives, and leverage. Gold has historically been a primary store of value in Islamic finance, and XAUT's blockchain efficiency and physical bullion possession make it an attractive option.
Paolo Ardoino, Tether's CEO, stated that the Shariah compliance certification will expand access to digital gold in a way that respects Islamic finance principles while leveraging blockchain technology. This move is expected to advance the adoption of XAUT within Gulf Cooperation Council (GCC) countries, parts of Africa, worldwide financial centers, and South Asia.