Overview
- Amanah Advisors certified XAU₮ as Shariah-compliant after reviewing its structure and reserves, a decision announced on Monday that clears the token for use in Islamic finance products.
- Each XAU₮ represents ownership of one troy fine ounce of London Good Delivery gold stored in Swiss vaults, and Tether reported holdings of more than 707,000 troy ounces worth about $3.3 billion as of March 31.
- The certification confirmed that XAU₮ is physically backed, uses transparent reserve reporting, and excludes interest-bearing features, leverage and speculative derivative exposure.
- Tether said it will roll out multilingual education and regional outreach while Amanah Advisors will develop governance guidance for secondary-market trading, with partnerships such as Ledn and ADGM recognition cited as next steps toward institutional use.
- The Shariah ruling does not alter XAU₮’s legal or regulatory status in jurisdictions like the United States, and wider adoption will still depend on custody arrangements, redemption terms, local permissions and secondary-market rules.