Tether has expanded the reach of its gold-backed digital asset after Amanah Advisors granted Shariah certification to XAU₮, making it eligible for use across the global Islamic finance sector. The token now aligns with Islamic finance principles, making it suitable for Islamic banks, financial institutions, and individual investors worldwide. The approval verifies that XAU₮ maintains complete reserve transparency while operating without interest, leverage, or covert financial tactics. Targeting one of the fastest-growing financial markets in the world, Tether has more than $2.5 billion worth of gold backing the token.

XAU₮ Meets Key Islamic Finance Requirements

Tether announced on Monday that XAU₮ has received official Shariah certification from Amanah Advisors following an examination of the product's management and structure. The certification attests to the token's adherence to the fundamental tenets of Islamic financing.

The report claims that physical gold reserves completely support XAU₮, avoid leveraged financial systems, and neither generate nor depend on interest. These are crucial requirements for financial goods that are to be accepted in accordance with Shariah.

One troy ounce of allotted physical gold is represented by each XAU₮ token. Rather than being a part of a pooled or partially backed reserve, the gold is expressly designated to sustain the circulating supply. This structure complies with Islamic financial requirements while providing holders with direct exposure to physical gold.

Full Reserve Transparency Supports the Certification

The transparency of Tether's reserve structure is a key component of the certification. Users may confirm that the digital asset is fully supported by physical reserves because each XAU₮ token is backed by an equal amount of allocated gold.

Additionally, the company verified that token holders can redeem XAU₮ for physical gold or trade it on blockchain networks, providing flexibility without sacrificing the underlying asset backing.

According to Tether, the market value of the gold reserves that underpin XAU₮ has surpassed $2.5 billion. This increases confidence that the token retains complete asset backing rather than depending on synthetic exposure or unsecured claims, making XAU₮ one of the biggest tokenised gold products now on the market.

XAU₮, Tether’s Gold-Backed Digital Asset, Receives Shariah Certification, Unlocking New Pathways for Islamic Banks, Institutions, and Individuals Worldwide

Read more: https://t.co/37IADz3BRJ

— Tether (@tether) July 27, 2026

Certification Opens Access to a $3 Trillion Market

By making XAU₮ eligible for adoption throughout the $3 trillion global Islamic banking industry, the Shariah certification greatly increases its potential application.

According to Tether, the accreditation opens doors for Islamic banks, financial organisations, and private investors looking for religiously compliant blockchain-based financial solutions.

Additionally, the business outlined a number of useful applications that would profit from the permission. These include tokenised trade finance solutions, digital gold savings products, and other blockchain-based financial services that adhere to Shariah.

Tether anticipates that demand will be especially high in areas where Islamic finance is still expanding quickly, such as South Asia, Africa, and the Gulf countries. For many institutions and investors in these markets, access to tokenised gold was previously restricted by a significant regulatory and religious hurdle that is now eliminated by the certification.

Tether Sees Blockchain & Islamic Finance Working Together

In response to the announcement, Tether CEO Paolo Ardoino stated that rather than considering blockchain technology and Islamic banking as distinct financial systems, the certification offers a chance to integrate the two.

According to him, XAU₮ shows how blockchain technology may increase productivity while adhering to the regulations governing financial products that comply with Shariah. Tether thinks it can cater to a wider range of consumers who are looking for both technological innovation and religious conformity by providing fully backed digital gold with transparent reserves and no interest-based structure.

The organisation sees the certification as more than just a statutory requirement. It presents XAU₮ as a digital asset that can facilitate new financial solutions designed for Islamic organisations and individuals while preserving the physical support, on-chain accessibility, and transparency that are now essential to tokenised real-world assets.

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