Key facts
- Tether Gold (XAUT) is now an Accepted Spot Commodity in Abu Dhabi Global Market (ADGM).
- Regulated firms within ADGM can offer services related to XAUT.
- This recognition follows ADGM's earlier acceptance of Tether's USDt.
- Tether Gold's total value locked (TVL) has increased significantly over the past year.
- Bitcoin lending platform Ledn plans to accept XAUT as loan collateral.
Tether Gold (XAUT) has achieved recognition as an Accepted Spot Commodity within the Abu Dhabi Global Market (ADGM), a significant international financial center. This designation permits regulated firms operating under ADGM's purview to provide services involving the tokenized gold asset, provided they possess the necessary regulatory permissions.
This development builds upon ADGM's prior acceptance of Tether's USDt (USDT) as an Accepted Fiat Referenced Token, further expanding Tether's regulated product offerings in the region. Tether CEO Paolo Ardoino highlighted that the new designation offers a clearer pathway for regulated entities to offer XAUT. ADGM stated that this move will foster business growth by broadening the range of products and services available to companies within its jurisdiction.
Data from DefiLlama indicates a substantial increase in Tether Gold's total value locked (TVL), which has more than tripled in the past year, growing from approximately $826 million to about $2.86 billion. Beyond trading and custody, XAUT is finding new applications. In June, the Bitcoin lending platform Ledn announced its intention to incorporate XAUT as loan collateral later this year, enabling clients to secure loans against their tokenized gold holdings without needing to sell them.
According to RWA.xyz, the market for tokenized commodities is valued at approximately $4.46 billion, representing nearly 13% of the total tokenized real-world asset market, which stands at around $34.73 billion.