Abu Dhabi financial hub grants Tether Gold status as Accepted Spot Commodity
Firms operating under regulation in Abu Dhabi Global Market can now provide services related to Tether Gold following the designation, as tokenized commodity adoption expands.
Abu Dhabi Global Market (ADGM) has granted Tether Gold (XAUT) recognition as an Accepted Spot Commodity, enabling companies operating within the international financial center to provide services related to the gold-backed tokenized asset, provided they possess the necessary regulatory approvals.
This designation builds upon ADGM's previous approval of Tether's USDt (USDT) as an Accepted Fiat Referenced Token, further broadening the range of regulated products the company offers within one of the Middle East's premier international financial hubs.
Paolo Ardoino, Tether's CEO, stated that the designation provides regulated companies with a more defined pathway to offer XAUT, whereas ADGM indicated the move would facilitate business expansion by broadening the range of products and services accessible to firms operating within the financial center.
According to DefiLlama data, the total value locked (TVL) for Tether Gold has experienced growth exceeding threefold during the past year, climbing from approximately $826 million to around $2.86 billion.
Beyond trading and custody applications, Tether Gold is discovering additional use cases. In June, Ledn, a Bitcoin lending platform, revealed intentions to incorporate XAUT as acceptable loan collateral later this year, enabling customers to secure loans against their tokenized gold assets without liquidating them.
Data from RWA.xyz indicates that tokenized commodities possess a distributed value of approximately $4.46 billion and represent nearly 13% of the tokenized real-world asset market, which totals roughly $34.73 billion.
