Is this crypto halal? Shariah screening report
Tether Gold
XAUT
- Price
- $4,455.68
- Market cap
- $2.73B
- Circulating supply
- 612,823.66
- 24h change
- -0.02%
Report generated 8/27/2026, 6:34:28 PM · stored corpus assessment · confidence 88%
Crypto Halal Report Criteria
We use a disciplined framework to determine if a digital asset is Comfortable from a sharia perspective, based on three core pillars.
Purpose & Real-World Value Clear
Tether Gold (XAUT) is a digital token backed by physical gold, where each token represents ownership of one troy fine ounce of gold stored in a Swiss vault. The primary purpose is to provide a digital way to own and trade gold while ensuring the underlying asset is securely stored and fully backed.
Honesty & Founder Intent Clear
XAUT follows a straightforward model where tokens are minted only when backed by physical gold purchases. There is no pre-mine or founder allocation, as tokens are created based on market demand and gold deposits.
Dealing with Risk & Speculation Clear
Speculative trading of a real asset is treated as trade, not gambling, under the screening framework.
Crypto Overview
Purpose and Utility
Tether Gold (XAUT) is a digital token backed by physical gold, where each token represents ownership of one troy fine ounce of gold stored in a Swiss vault. The primary purpose is to provide a digital way to own and trade gold while ensuring the underlying asset is securely stored and fully backed.
Current Usage
XAUT has achieved significant adoption since its launch in January 2020. As of 2024, it maintains a market presence with consistent trading volume across major exchanges. The total supply of XAUT directly corresponds to the amount of physical gold in storage.
Business Model
The business model is straightforward and transparent: Users can purchase XAUT tokens that represent direct ownership of physical gold. The gold backing each token is held in Switzerland and can be redeemed by token holders who meet minimum requirements. Tether charges fees for token issuance and redemption.
Development Activity
The platform maintains regular technical updates and security audits. The gold reserves are regularly attested by independent accountants, providing transparency about the backing of tokens.
Token Distribution
XAUT follows a straightforward model where tokens are minted only when backed by physical gold purchases. There is no pre-mine or founder allocation, as tokens are created based on market demand and gold deposits.
Rating Justification
ComfortableFrom a Shariah compliance perspective, XAUT represents ownership of a real asset (physical gold) and facilitates its trading in a digital form. The business model is transparent, and the underlying asset is verifiable. The token serves a clear purpose as a digital representation of gold ownership, which aligns with Islamic principles of asset-backed transactions. The project demonstrates legitimate utility in providing easier access to gold ownership and trading, with verifiable backing and redemption mechanisms. There are no elements of gambling, interest, or prohibited activities in its core functionality.
While we find this token comfortable to invest in from a Shariah-screening perspective, this does not imply we think it is a strong investment.
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Disclaimer: These reports are findings of AI analysis and cannot be guaranteed to be accurate. Ratings reflect opinions derived from automated criteria applied to the sources you submitted and a corpus of prior assessments. This is not a fatwa and does not determine Islamic law. Ratings may change as projects evolve. Always conduct your own research before investing.
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