Tether's Gold-Backed XAU₮ Earns Sharia Certification, Expanding Access to Islamic Finance

Tether has announced that XAU₮, its gold-backed digital asset, has received Sharia compliance certification from Amanie Advisors, under the supervision of Islamic finance scholar Mufti Faraz Adam.

The certification confirms that XAU₮ adheres to key principles of Islamic finance, allowing Muslim investors to gain digital exposure to physical gold through a structure that complies with Sharia requirements. The milestone marks another step in the convergence of blockchain technology, tokenized real-world assets (RWAs), and Islamic finance.

Bridging Physical Gold and Digital Finance

Gold has long held a central role in Islamic finance as a trusted store of value. At the same time, financial markets are increasingly embracing digital infrastructure, creating demand for products that combine traditional assets with the accessibility and efficiency of blockchain technology.

Tether's XAU₮ was developed to meet that demand. Each token represents direct ownership of physical gold stored in Swiss vaults, offering investors blockchain-based access to the precious metal while remaining fully backed by tangible reserves.

According to Tether, the product is structured without interest-bearing mechanisms, leverage, or speculative derivatives, aligning it with principles commonly associated with Sharia-compliant financial products.

Certification Confirms Compliance With Islamic Finance Principles

The Sharia certification determined that TG Commodities S.A. de C.V., the issuer of XAU₮, satisfies the core requirements for compliance with Islamic finance.

These include direct ownership of physical gold, transparent and verifiable asset backing, the absence of interest-based transactions (riba), and a reserve structure that avoids excessive speculation and leveraged exposure.

The certification comes as Islamic finance continues to expand globally, while demand for gold remains strong across many Muslim-majority markets. However, digital investment products that meet Sharia requirements remain relatively limited, potentially creating new opportunities for tokenized assets such as XAU₮.

New Opportunities for Islamic Financial Products

Tether believes the certification could support broader institutional adoption of XAU₮ across Islamic financial services.

Potential applications include Sharia-compliant savings products, Takaful (Islamic insurance) solutions, long-term wealth preservation strategies, tokenized trade finance, and collateral management.

Rather than providing synthetic exposure to gold, XAU₮ directly links blockchain technology with ownership of physical bullion, offering investors digital access while preserving the asset's traditional characteristics.

Tokenized Real-World Assets Continue to Gain Momentum

The announcement reflects the broader evolution of the tokenized real-world asset (RWA) market, where blockchain technology is increasingly being used to represent ownership of tangible assets such as gold, real estate, and government securities.

As tokenization moves beyond pilot projects toward commercial deployment, asset-backed digital products are emerging as one of the fastest-growing segments of digital finance.

For Tether, obtaining Sharia certification demonstrates how blockchain-based financial products can be adapted to meet different regulatory, ethical, and cultural frameworks, potentially expanding adoption among both retail and institutional investors.

Commenting on the milestone, Paolo Ardoino, CEO of Tether, said:

"Gold has long represented stability and confidence across cultures and generations. With XAU₮ now recognized as Sharia-compliant, we are expanding access to digital gold in a way that respects Islamic financial principles while leveraging the transparency and efficiency of blockchain technology."

GCC, Asia, and Africa Among Target Markets

Tether expects the certification to strengthen XAU₮'s presence in several key markets where Islamic finance plays a significant role.

These include the Gulf Cooperation Council (GCC) countries, where Islamic banking is well established, as well as South Asia and parts of Africa, where gold continues to serve as an important savings asset alongside growing adoption of digital financial services.

The company also said Amanie Advisors will continue working with Tether to develop governance frameworks and practical guidance supporting the Sharia-compliant use of XAU₮, including in secondary market trading.

In parallel, Tether plans to expand educational initiatives and regional outreach programs aimed at both financial institutions and individual investors.

UAE Positioned at the Intersection of Islamic Finance and Tokenization

The certification also reflects a broader trend toward integrating traditional assets with digital financial infrastructure, particularly in markets where demand for both gold and Sharia-compliant financial products remains strong.

As Gulf countries, led by the United Arab Emirates, continue developing regulatory frameworks for digital assets and tokenization, the region is increasingly positioning itself as a hub where Islamic finance and blockchain innovation intersect.

The launch of Sharia-certified tokenized assets such as XAU₮ also highlights a broader shift within the digital asset industry, moving beyond speculative trading toward blockchain-based financial products backed by real-world assets and designed for institutional as well as retail use.