Tether's gold-backed XAU₮ token receives Shariah certification from Amanah Advisors, expanding appeal to Islamic finance participants.
DeFi & Yields ·
Tether's gold-backed XAU₮ token has received Shariah certification from Amanah Advisors, according to Tether. The certification expands the token's eligibility among Islamic finance participants and institutions that operate under Shariah-compliant investment rules.
Gold has undergone a resurgence as a monetary asset and on-chain token, driven partly by its scarcity and inverse relationship to real US interest rates. Gold's price movements are sensitive to Federal Reserve policy and inflation data, making it behaviorally similar to Bitcoin for crypto traders. Central banks have been accumulating gold reserves as a hedge against dollar settlement risk, with emerging-market central banks leading purchases in recent years.
The Shariah certification opens a pathway for Islamic banks and individuals to hold tokenized gold on-chain while adhering to religious investment principles. The scope and terms of Amanah Advisors' certification—including which specific Islamic finance rules it satisfies—remain unspecified in available materials.