Tether’s gold-backed token XAUt has obtained Shariah certification from Amanah Advisors, a transfer that would increase entry to the token amongst Islamic monetary establishments and traders searching for Shariah-compliant publicity to bodily gold.
The certification discovered XAUt’s construction complies with key Islamic finance ideas, together with full backing by bodily gold, the absence of curiosity and leverage, and clear reserves. Every XAUt token represents one troy ounce of bodily gold saved in Swiss vaults, in line with Tether.
The designation provides Tether a clearer pathway to market XAUt to Islamic monetary establishments and traders that require Shariah-compliant funding merchandise. Tether mentioned it expects the certification to help adoption throughout markets the place Islamic finance is extensively used, together with the Gulf Cooperation Council, South Asia and elements of Africa.
XAUt is likely one of the largest tokenized gold merchandise within the crypto market. Tether’s newest reserves report confirmed the token was backed by greater than 707,000 troy ounces of bodily gold price over $3.3 billion as of March 31.
In keeping with RWA.xyz information, the token’s onchain asset worth has climbed from about $700 million in July 2025 to roughly $2.5 billion.
Tether tokenized gold. Supply: RWA.xyz
Associated: Kraken strikes nearer to UAE launch after Dubai regulatory approval
Shariah-compliant crypto merchandise acquire traction
Cryptocurrencies have lengthy divided Islamic students, with debates centering on whether or not digital property adjust to Shariah ideas that prohibit extreme uncertainty, hypothesis and curiosity. As firms search to deal with these considerations, Shariah-compliant digital property have begun to emerge.
One early instance got here in 2025, when Bahrain-based AlAbraaj Eating places Group adopted a Bitcoin (BTC) treasury technique and mentioned it deliberate to develop Shariah-compliant monetary devices to broaden entry to Bitcoin throughout the Islamic world.
Extra not too long ago, in April, Palm Azgar Finance expanded its Shariah-compliant PUSD stablecoin to ADI Chain, concentrating on the greater than $3 trillion Islamic finance market. PUSD turned the second stablecoin accessible on the community, permitting establishments to settle transactions utilizing both a dollar-linked asset or a dirham-denominated token on the identical infrastructure.
In the meantime, Dubai has emerged as a number one crypto hub within the Center East, persevering with to increase its regulated digital asset market. Earlier this month, the emirate’s Digital Property Regulatory Authority (VARA) issued its fiftieth digital asset service supplier license, surpassing the variety of licensed crypto corporations in Hong Kong and Singapore.
Journal: CLARITY hopes fade, BitMEX shuts as lawsuit looms: Hodler’s Digest, July 26
