XAUt Gold Token Gains Shariah Nod as Reserves Hit 707,000 Oz, $3.3B

Tether’s gold-backed token XAUt has secured Shariah certification from Amanah Advisors, a compliance stamp that could unlock demand from Islamic financial institutions for a token now backed by more than 707,000 troy ounces of physical gold worth over $3.3 billion as of March 31. The certification arrives as the token’s onchain asset value has already climbed from roughly $700 million in July 2025 to about $2.5 billion today, according to RWA.xyz data.

What the certification actually verifies

Amanah Advisors reviewed XAUt’s structure against core Islamic finance principles and found it compliant on three counts: full backing by physical gold, the absence of interest and leverage, and transparent reserve reporting. Each XAUt token represents one troy ounce of physical gold held in Swiss vaults, a 1:1 link between the digital asset and allocated bullion that Tether says satisfies Shariah requirements against excessive uncertainty and speculation.

For traders, the distinction matters because Islamic finance rules prohibit interest-bearing structures and instruments carrying undue leverage or ambiguity — conditions that have historically kept many digital assets out of reach for Shariah-compliant portfolios. A token that is fully collateralized by physical metal, with no yield mechanism attached, sidesteps those objections more cleanly than most crypto products.

Where the new demand could come from

Tether said it expects the certification to support adoption across the Gulf Cooperation Council, South Asia and parts of Africa — regions where Islamic finance principles govern large pools of institutional and retail capital. Access to a Shariah-approved wrapper gives banks and asset managers in those markets a compliant on-ramp to gold exposure without needing to hold and audit physical bullion themselves.

The move fits a broader pattern of crypto products seeking explicit Shariah sign-off after years of scholarly disagreement over whether digital assets meet Islamic finance standards. Debate has centered on whether tokens introduce excessive uncertainty, speculation or interest-like returns. In 2025, Bahrain-based AlAbraaj Restaurants Group became an early test case when it adopted a Bitcoin treasury strategy, a sign that compliant structuring is starting to bridge the gap between Islamic finance and digital assets.

Why it matters for gold-token holders

XAUt already ranks among the largest tokenized gold products in the market, and the roughly 3.5x growth in its onchain asset value over the past year points to rising appetite for tokenized bullion regardless of the certification. A Shariah stamp doesn’t change the token’s collateral or redemption mechanics, but it does widen the addressable investor base to institutions that were previously excluded on compliance grounds — a distribution catalyst rather than a change to the underlying gold backing itself.

For existing holders, the reserve figures remain the key number to watch: as long as Tether’s disclosed backing of over 707,000 ounces tracks the token’s circulating supply, the certification simply adds a new distribution channel on top of an already-verified collateral base.

Sources

• coingape.com
• cointelegraph.com