Tether Gold (XAU₮) Earns Shariah Certification, Expanding Islamic Finance Access

Tether Gold (XAU₮) has received Shariah certification from Amanah Advisors, marking a major step toward broader adoption of tokenized gold in Islamic finance. The certification confirms that the gold-backed digital asset complies with key Islamic finance principles, creating a compliant investment option for Islamic banks, institutions, and individual investors seeking digital access to physical gold.

Issued by TG Commodities, S.A. de C.V., each XAU₮ token represents direct ownership of allocated physical gold securely stored in Swiss vaults. Amanah Advisors, led by Mufti Faraz Adam, reviewed the token’s structure and verified that it meets Shariah standards, including real asset ownership, transparent reserves, and the absence of interest (riba), excessive uncertainty, leverage, or speculative derivatives.

The approval strengthens XAU₮’s position as a blockchain-based gold investment that combines the security of physical bullion with the efficiency of digital assets. It also follows Tether’s recent partnership with crypto lending platform Ledn, allowing users to use XAU₮ as collateral for gold-backed loans while maintaining full physical backing.

Tether believes the certification could accelerate adoption across Islamic banks, takaful providers, halal savings products, trade finance platforms, and institutional investors. The company said XAU₮ can support long-term wealth preservation, institutional gold allocation, and collateralized financing while remaining fully backed by physical gold.

Tether CEO Paolo Ardoino said gold has long represented stability and trust across generations, adding that Shariah certification enables the company to expand access to digital gold without compromising Islamic finance principles.

Beyond gold tokenization, Tether continues to expand its blockchain infrastructure through the Bitcoin-based RGB protocol, which leverages Bitcoin’s UTXO model, client-side validation, and Lightning Network compatibility. The protocol is designed to support faster, more private USDT transactions on Bitcoin-native addresses.

While Tether expects strong growth for XAU₮ in the GCC, South Asia, Africa, and other Islamic financial hubs, some U.S. investors remain focused on the asset’s intrinsic value. One investor noted that gold-backed tokens remain attractive primarily because they are backed by physical gold, regardless of religious certification.