ADGM Approves Tether Gold as Accepted Spot Commodity

Abu Dhabi Global Market has recognized Tether Gold (XAUT) as an Accepted Spot Commodity, enabling firms licensed in the ADGM financial centre to offer services involving the tokenized gold asset provided they obtain the required regulatory permissions.

The recognition follows ADGM’s earlier acceptance of Tether’s USDt (USDT) as an Accepted Fiat Referenced Token, expanding the range of Tether products with formal status in the jurisdiction. ADGM indicated the designation will broaden the products and services available to companies operating in the financial centre and provide a clearer regulatory pathway for firms that want to handle XAUT.

On-chain metrics show Tether Gold’s total value locked rose from about $826 million a year ago to roughly $2.86 billion. The token has been used in trading and custody and is being adopted for other financial uses. In June, Bitcoin lending platform Ledn announced plans to add XAUT as loan collateral later this year, which would allow clients to borrow against their tokenized gold holdings without selling them.

Data on tokenized assets shows tokenized commodities have a distributed value of about $4.46 billion and account for nearly 13% of the roughly $34.73 billion tokenized real-world asset market.

Paolo Ardoino, Tether’s chief executive, called the designation “a clearer path for regulated firms to offer XAUT.” Tether Gold is a tokenized representation of physical gold that trades under the ticker XAUT. With ADGM recognition, licensed financial firms in the centre that secure the necessary permissions will be able to include the token in their service offerings, subject to ADGM rules and oversight.