Tether's XAU token gets Shariah compliance certification

Tether's gold-backed digital token, XAU, has received official Shariah compliance certification, opening the Islamic finance market to a new blockchain-based asset. The certification, announced on July 27, 2026, was issued by the advisory firm Amanah Advisors, led by Mufti Faraz Adam, after a review of the token's structure and reserves. This validation allows Islamic banks, institutions, and individual investors to gain digital exposure to physical gold while adhering to Islamic financial principles.

The certification confirms that each XAU token represents ownership of one troy ounce of physical gold, with the bullion stored in secure vaults in Switzerland. The review validated several key operational aspects, including the actual ownership of the physical assets, transparency of reserves, and the absence of interest-based structures, known as riba, as well as speculative derivatives and leverage mechanisms. This structure is designed to provide direct exposure to allocated gold bars rather than synthetic or derivative products.

This development is significant for the multi-trillion dollar Islamic finance industry, where few blockchain products have fully met its ethical and...