Gold Token Gets Halal Approval, Opening Doors for Muslim Investors
Tether has secured a Shariah certificate from Amanah Advisors, confirming that its gold‑backed token XAUt complies with Islamic finance principles. The approval verifies that each token is fully backed by a real ounce of gold stored in Swiss vaults and that the token avoids interest or borrowing.
Why It Matters
- Religious Compliance: Banks and investors adhering to Shariah law can now view XAUt as a legitimate way to own gold without violating religious guidelines.
- Market Expansion: Tether expects the certification to drive adoption in regions where Islamic finance is significant, such as Gulf countries, South Asia, and parts of Africa.
Current Scale
- Gold Reserves: As of March 31, XAUt’s reserves covered more than 707,000 troy ounces of gold, worth over $3.3 billion.
- Blockchain Value Growth: The token’s value surged from roughly $700 million in July 2025 to about $2.5 billion, indicating strong market traction.
Broader Context
Digital assets are gaining traction in Muslim‑majority markets amid debates over their compatibility with Shariah law. Earlier this year, a Bahrain group incorporated Bitcoin into its treasury and plans to offer Shariah‑compliant tools. In April, Palm Azgar Finance launched a Shariah‑friendly stablecoin on ADI Chain, targeting the $3 trillion Islamic finance market and allowing institutions to trade in either U.S. dollars or a dirham‑linked digital asset.
These developments suggest that more crypto products are being tailored to meet religious requirements, potentially broadening the user base and adding legitimacy to digital finance.
