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Is Tether Gold (XAUT) halal?

Questionable

No condition fails, but 1 point remains to be verified or falls under a tolerated case.

Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/07/2026 and not reviewed by a human.

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The asset

token backed by physical gold Issuer: TG Commodities, S.A. de C.V. (El Salvador company of the Tether group; sole administrator: Giancarlo Devasini according to the reserve report of June 30, 2026).

ERC-20 token (Ethereum contract 0x68749665FF8D2d112Fa859AA293F07A622782F38) each unit of which represents, according to the issuer, an undivided share of one fine troy ounce of gold from a London Good Delivery bar held in Switzerland. Total supply of 827,417.63 tokens on October 7, 2026 (Etherscan); price of $4,166.75 (CoinGecko).

Why this verdict

  1. Permissible purpose : met. XAUT is used to hold and transfer gold on a blockchain: each token represents an undivided share of one ounce of physical gold from a London Good Delivery bar. No gambling, interest-bearing lending or impermissible content purpose is found.
  2. No riba : met. The terms read provide no interest or yield for the holder; the issuer collects one-time fees of 25 basis points on purchase or redemption, with no custody fees, and the BDO report states that the gold in reserve belongs to the holders and not to the company. No lending of the gold appears in the documents read (an absence is not a statement by the issuer).
  3. No gambling : met. A spot purchase is of a token that represents a share of physical gold held for the holders: under the terms, delivery of the gold share is completed upon purchase or transfer of the token. The token is transferable on Ethereum (61,534 holding addresses on October 7, 2026) and priced at $4,166.75; it is not a bet on a price difference with no purchase or delivery.
  4. No excessive gharar : met. Rights, issuance rules and redemption are documented. BDO (Milan) issued a reasonable assurance report (ISAE 3000R) on July 31, 2026: as of June 30, 2026, 707,747.139 ounces of gold in reserve for 707,747.09 tokens in circulation. Limits: quarterly report dated at a given point in time, custodian not named, 94,923.43 tokens “available for sale” held by a related entity.
  5. Real ownership : met. XAUT can be held in a personal Ethereum wallet, but the contract gives the issuer minting, address blocking and destruction of blocked funds, and the terms allow it to freeze tokens; withdrawal of physical gold is by whole bar (430 XAUT, minimum recommended by the issuer) after account verification, with delivery in Switzerland.
  6. No fraud or manipulation : to be verified or tolerated case. No sanction targeting TG Commodities was found, but Tether group companies were sanctioned in 2021 by the CFTC ($41 million) and the New York Attorney General ($18.5 million) for misleading statements about USDT reserves (2016-2019), through settlements without admission of the facts; those decisions concern another token. No deception of XAUT buyers is established in the sources read.
    • « for making untrue or misleading statements and omissions of material fact in connection with the U.S. dollar tether token (USDT) stablecoin » CFTC (press release) (2021-10-15)
    • « The order requires Tether to pay a civil monetary penalty of $41 million » CFTC (press release) (2021-10-15)

Contract security scan

GoPlus security scan of the XAUt contract on Ethereum: 62,441 holders; top ten wallets excluding platforms and contracts 54.5%; code published. Signals found: Upgradeable proxy contract: the code can change after the fact (is_proxy). Top ten wallets excluding platforms and contracts: 54.5% of supply. Reading (rule A.8): issuer identified (TG Commodities, an El Salvador company authorized by the National Digital Assets Commission); the upgradeable contract is a regulated issuer's practice; GoPlus does not fill in the minting and blocking fields (“?”), but the code read on Etherscan contains owner-only minting (onlyOwner), the addition of an address to a blocklist and the destruction of blocked funds (see c5), which are issuer powers and not rug pull signals; the share held by the top ten wallets excluding platforms exceeds 50% but, alone, falls under concentration (information), with no other scan signal (code published, no tax or sell restriction).

Opinions found during the research

Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.

What could not be verified

Sources read

Other cryptos analyzed

General information: neither investment advice nor a fatwa. Verdict calculated by published rules, from financial statements read automatically and not reviewed by a human. Read the methodology