Tether Certifies XAUT as Shariah Compliant, Sparks Mixed Reactions Among U.S. Investors
On July 27, Tether announced that its gold-backed digital token, XAUT, has been certified as Shariah compliant by Islamic finance authority Amanah Advisors. The certification ensures the token aligns with Islamic financial principles such as no interest and real asset backing. U.S. crypto investors expressed skepticism about attaching religious compliance to a financial product like gold. Many questioned why an investment would need a religious endorsement, emphasizing that they base decisions on tangible value rather than faith-based criteria. Some called the certification redundant given gold's universal historical acceptance across cultures and religions. Shariah-compliant finance is designed for observant Muslims who seek investments structured according to Islamic law—avoiding interest, speculation, and ensuring real asset backing. Tether’s XAUT meets these standards by offering a claim on physical gold without generating yield or involving leverage.
