Tether Gold (XAUT), the digital token backed by physical gold and issued by Tether, has been formally recognized as an Accepted Spot Commodity within the Abu Dhabi Global Market (ADGM). The decision enables firms licensed by ADGM, one of the region’s largest international financial centers, to offer services related to XAUT provided they obtain the necessary regulatory clearances.
Strategic significance for ADGM and Tether
The ADGM already recognizes Tether’s USDt (USDT) as an Accepted Fiat Referenced Token. The latest classification of XAUT expands Tether’s portfolio of regulated offerings in the jurisdiction, reflecting growing institutional interest in tokenized assets, particularly those backed by tangible commodities like gold.
Paolo Ardoino, CEO of Tether, welcomed the move, emphasizing that the new status gives regulated institutions at ADGM a transparent framework to integrate XAUT into their products and services. The ADGM authority stated that the recognition is expected to support business development in the center by boosting the diversity of digital assets available to financial companies.
Tether CEO Paolo Ardoino described the recognition as a major milestone, noting that it opens the door for regulated firms in ADGM to offer XAUT and supports broader adoption of regulated tokenized commodities.
ADGM, based in Abu Dhabi, serves as a key hub for global financial activity in the United Arab Emirates, providing licensing, regulation, and a business-friendly environment to financial operators.
Mini dictionary: Abu Dhabi Global Market (ADGM) is an international financial center located in Abu Dhabi that provides institutions with regulatory oversight and licensing to support the growth of financial services, especially in fintech and digital asset markets.
Rapid rise in Tether Gold adoption and ecosystem
According to DefiLlama, the total value locked (TVL) in Tether Gold has climbed sharply within the past year, swelling from $826 million to about $2.86 billion. This trend points to increased adoption of XAUT by investors seeking digital access to gold in a regulated manner.
| Metric | July 2023 | July 2024 |
|---|---|---|
| XAUT Total Value Locked (TVL) | $826 million | $2.86 billion |
Beyond trading and storage, XAUT’s utility is growing. In June, Bitcoin lending platform Ledn disclosed that it plans to accept XAUT as collateral for loans later this year. This upcoming service will let customers pledge tokenized gold as security, offering a way to access liquidity without selling their holdings.
Mini dictionary: Ledn is a Bitcoin and digital asset lending platform that enables clients to secure loans using cryptocurrencies or tokenized assets as collateral, providing access to credit without requiring the sale of those assets.
Tokenized commodities market continues to grow
Figures from RWA.xyz show that tokenized commodities have reached a distributed value of $4.46 billion. They now constitute nearly 13% of the $34.73 billion overall tokenized real-world asset (RWA) market, as institutions and investors look for new ways to engage with blockchain-backed versions of traditional assets.
Tether Gold’s expanding range of applications and growing asset pool reflect the ongoing integration of digital finance with established commodity markets in regulated jurisdictions like Abu Dhabi.
