Tether's XAUT Token Certified Shariah Compliant Amid U.S. Investor Skepticism
On July 27, Tether announced its gold-backed digital token, XAUT, has been certified as Shariah compliant by Islamic finance authority Amanah Advisors. This certification ensures the product adheres to principles of Islamic law such as no interest and real asset backing. TheStreet spoke with several U.S.-based crypto investors who expressed skepticism about applying religious compliance standards to financial products like gold tokens. Many questioned why a token would need a Shariah label, emphasizing that they invest in gold for its intrinsic value rather than any religious certification. Shariah-compliant finance is an established concept similar to halal food labeling—ensuring the product meets specific ethical and legal criteria under Islamic law. Tether's XAUT complies with these rules by avoiding interest-based returns, speculative derivatives, and ensuring transparency in its gold reserves.
Topics: gold-backed tokens investor sentiment Shariah compliance Tether (XAUT)