Tether Gold Secures Shariah Certification, Opening Tokenized Gold to Islamic Finance

Tether Gold (XAU₮) has obtained Shariah certification, giving Islamic banks, institutions and investors a compliant route to gain exposure to physical gold via blockchain. The review was conducted by Amanah Advisors, led by Mufti Faraz Adam, which approved the product's structure under Islamic finance principles. The certification focuses on real asset ownership, clear gold backing, reserve transparency and the absence of interest-based features. Each XAU₮ token represents ownership of physical gold stored in secure Swiss vaults and is issued by TG Commodities, S.A. de C.V. Tether says the product avoids riba, leverage and speculative derivatives, aiming to provide tokenized access while maintaining direct exposure to allocated bullion. Market participants expect the approval to support uptake among Islamic banks, takaful providers, halal savings platforms and trade-finance firms, which typically prioritize assets tied to tangible value and clear ownership terms. Tether also sees potential for broader distribution across the GCC, South Asia, Africa and other Islamic finance hubs, where demand for gold remains strong alongside rising interest in regulated digital assets. Beyond holding tokenized gold, eligible users may use XAU₮ as collateral through Tether's partnership with Ledn to access loans while retaining exposure to the underlying bullion. Tether notes that users should still review loan terms, fees and applicable local regulations before using any lending service. Tether Gold sits within Tether's wider push to connect traditional assets with blockchain networks. The company has also backed Bitcoin-based transfer systems using the RGB protocol and Lightning Network tools. For XAU₮, Tether says the priority remains direct gold ownership, verifiable reserves and digital transferability, with each token linked to allocated gold bars held in Swiss storage facilities and enabling fractional transfers without physical transport or private vault arrangements. Tether CEO Paolo Ardoino said gold has long been associated with trust and stability across cultures, and that Shariah approval allows Tether Gold to serve a broader user base while adhering to Islamic finance standards.