BlockBeats report, on July 27, Tether announced that its gold-backed digital asset, XAUT, has received Shariah compliance certification from Amanah Advisors, providing compliant digital gold investment channels for Muslim users, Islamic banks, and institutional investors worldwide.
Tether stated that this certification confirms XAUT complies with the core principles of Islamic finance, enabling users to digitally hold physical gold via blockchain infrastructure. Each XAUT token represents direct ownership of physical gold stored in Swiss vaults, with no interest (Riba), leverage, or speculative derivatives involved in the structure.
Amanah Advisors confirms that XAUT issuer TG Commodities, S.A. de C.V. meets Islamic finance requirements, including:
Physically own physical gold;
Asset reserves are transparent and verifiable;
No interest mechanism is involved;
Do not use leverage or speculative derivatives;
Features a transparent reserve structure.
Tether stated that gold has long played a significant role in the Islamic financial system, and XAUT aims to bridge traditional gold value with blockchain technology to enhance the global accessibility of digital gold. This certification is expected to drive the adoption of XAUT in GCC countries, parts of South Asia and Africa, and global Islamic financial hubs, including digital gold services by Islamic banks, halal-compliant savings products, wealth preservation solutions, and institutional-grade gold allocations.