Tether XAUt Gains Shariah Certification to Target $3 Trillion Islamic Market

Woofun AI reports that Tether’s XAUt gold token has achieved Shariah certification through Amanah Advisors, establishing a compliant framework for Islamic financial institutions and investors. This regulatory validation addresses structural requirements for Shariah-compliant exposure to physical gold, removing barriers for entities that previously could not allocate capital to digital gold assets due to religious finance constraints.

Structurally, the certification confirms that XAUt adheres to core Islamic finance tenets, specifically the absence of interest, leverage, and opaque reserve structures. Each token is fully backed by one troy ounce of physical gold held in Swiss vaults, ensuring tangible asset coverage. As of March 31, Tether’s reserves report indicated holdings exceeding 707,000 troy ounces, valued at over $3.3 billion, providing a transparent audit trail for compliance verification.

The strategic objective is to penetrate markets where Islamic finance dominates, including the Gulf Cooperation Council, South Asia, and parts of Africa.

Woofun AI data shows on-chain asset value for XAUt surged from approximately $700 million in July 2025 to roughly $2.5 billion, reflecting rapid adoption. This growth trajectory aligns with Tether’s intent to position XAUt as a primary vehicle for Shariah-compliant digital asset allocation.

Broader industry dynamics reveal ongoing scholarly debates regarding excessive uncertainty, speculation, and interest in digital assets, prompting competitors to develop compliant alternatives. In 2025, Bahrain-based AlAbraaj Restaurants Group adopted a Bitcoin (BTC) treasury strategy to broaden access, while Palm Azgar Finance expanded its PUSD stablecoin to ADI Chain in April. This move targets the $3 trillion Islamic finance market, enabling transactions via dollar-linked or dirham-denominated tokens on a single infrastructure.

Dubai continues to solidify its leadership in the Middle East’s regulated digital asset landscape, outpacing traditional financial hubs. The Virtual Assets Regulatory Authority (VARA) recently issued its 50th virtual asset service provider license, surpassing the total licensed crypto firms in Hong Kong and Singapore. This regulatory acceleration underscores the region’s growing dominance in compliant digital finance infrastructure.