Tether Gold Gains Shariah Certification for Islamic Finance Access

Tether Gold has gained Shariah certification, opening a compliant digital route to physical gold for Islamic banks, institutions and investors as XAU₮ links blockchain access with real bullion ownership securely stored in Swiss vaults under transparent reserve rules worldwide today.

Tether Gold Receives Shariah Approval

Tether said its gold-backed digital asset, XAU₮, received Shariah certification from Amanah Advisors, led by Mufti Faraz Adam. The approval confirms that XAU₮ meets core Islamic finance principles and supports compliant digital gold ownership for Islamic finance users.

XAU₮ is issued by TG Commodities, S.A. de C.V. Each full token represents direct ownership of physical gold stored in Swiss vaults, providing holders with allocated gold exposure via blockchain rails.

Amanah Advisors reviewed the token’s structure against Islamic finance requirements. The certification covers real gold ownership, clear asset backing, transparent reserves, and the absence of interest-based features.

Tether said XAU₮ does not use riba, leverage, or speculative derivatives. As reported by CoinGape, Tether Partners With Ledn to Launch XAU₮-Backed Gold Loans.

The partnership allows XAU₮ holders to use tokenized gold as collateral for loans through Ledn, expanding the asset into lending and liquidity services while keeping physical gold backing central and future use across regulated finance channels.

Islamic Finance Access Expands for XAU₮

The certification could widen XAU₮ adoption among Islamic banks, takaful providers, halal savings products, trade finance platforms, and institutional investors. These use cases link tokenized gold with markets that already value physical gold as a store of wealth.

Tether said XAU₮ may support Islamic banks that want to integrate digital gold products. The token may also support long-term wealth preservation, institutional gold allocation, and collateral applications.

Tether CEO Paolo Ardoino said, “Gold has always represented stability and trust across cultures and generations.” He added that Shariah recognition allows Tether to expand access to digital gold while respecting Islamic finance principles.

The certification may also help tokenized real-world assets reach users in Islamic finance markets. Tether said XAU₮ bridges traditional bullion ownership with blockchain technology, offering digital access to gold without changing the asset’s physical backing.

Tether Links Gold Tokenization With Broader Blockchain Strategy

Tether’s digital asset strategy also includes Bitcoin-native transfer infrastructure through the RGB protocol. The protocol combines Bitcoin’s UTXO security model, client-side validation, and Lightning Network support.

This structure can support USDT transfers from Bitcoin-native addresses. Tether said the model may allow faster off-chain transactions and stronger privacy than account-based networks.

For XAU₮, the focus remains physical gold ownership through tokenized access. Each token links to allocated gold bars with verifiable backing, giving users a digital claim tied to bullion reserves.

Tether said the certification may support growth in GCC countries, South Asia, parts of Africa, and Islamic financial hubs. These markets combine long-standing demand for gold with rising interest in digital finance.

Some U.S. crypto investors questioned whether a religious certification changes the investment case for gold-backed tokens. One New York-based XAU₮ investor, Daniel Foster, said, “I’m buying gold because it’s gold.”

If you want to trade Shariah-compliant tokens, a licensed crypto exchange in UAE is a good first step.