Tether’s gold-backed token XAUt has received Shariah certification, a development that may help the product reach a broader audience in Islamic finance. The certification was issued by Amanah Advisors and centers on making the token more accessible to institutions and investors that require financial products to meet Shariah standards.
XAUt is designed to give holders exposure to physical gold through a digital token. With the new certification, Tether’s product could become more relevant for market participants looking for a Shariah-compliant way to access gold without using traditional structures that may not fit their requirements.
The move is notable because gold has long held a central place in many investment strategies, including among investors focused on capital preservation. By combining gold backing with a digital format, XAUt may appeal to users who want both the familiarity of a precious metal and the flexibility of blockchain-based assets.
For Tether, the certification also points to a wider push to connect digital assets with established financial demand. If Islamic financial institutions and individual investors adopt the token, XAUt could gain stronger footing in markets where Shariah compliance is an essential consideration.
