TLDR
- ADGM recognized Tether Gold as an Accepted Spot Commodity.
- Approved ADGM firms can offer regulated services tied to XAUT.
- XAUT’s total value locked rose to about $2.86 billion.
- Tether Gold is backed by physical gold and traded on blockchain rails.
- Ledn plans to accept XAUT as loan collateral later this year.
Tether has gained a new regulatory foothold in Abu Dhabi after ADGM recognized its gold-backed XAUT token as an Accepted Spot Commodity.
ADGM Recognizes XAUT as Accepted Spot Commodity
Abu Dhabi Global Market recognized Tether Gold (XAUT) as an Accepted Spot Commodity, giving approved firms a clearer route to offer services tied to the tokenized gold asset. The status applies only to companies with the required regulatory permissions inside ADGM.
Tether Gold is backed by physical gold and is designed to give users blockchain-based access to gold exposure. The ADGM recognition does not automatically allow every firm in the financial center to offer XAUT trading, custody, or related services.
Tether CEO Paolo Ardoino said the move reflects the UAE’s role in digital asset regulation. He said ADGM’s recognition of XAUT creates a clearer path for regulated firms that want to support tokenized gold products.
The decision follows ADGM’s earlier recognition of Tether’s USDT as an Accepted Fiat Referenced Token. With XAUT and USDT now accepted under separate categories, Tether has expanded its regulated product presence in one of the Middle East’s main financial centers.
Tokenized Gold Demand Lifts XAUT Value
DefiLlama data placed Tether Gold’s total value locked near $2.86 billion, up from about $826 million a year earlier. That marks a rise of more than three times over the period.
Tokenized commodities have also grown within the wider real-world asset market. RWA.xyz estimates tokenized commodities at about $4.46 billion, while the broader tokenized real-world asset market stands near $34.73 billion.
XAUT accounts for a large share of the tokenized commodity category, based on those figures. The two datasets track different measures, but both point to rising demand for gold-backed digital assets.
XAUT is also moving beyond trading and custody. Bitcoin lending platform Ledn announced plans in June to accept XAUT as loan collateral later this year, allowing clients to borrow against tokenized gold holdings without selling them.
That planned use would place XAUT inside a crypto-backed lending product. Ledn has not yet disclosed loan-to-value terms, interest rates, or the exact launch date for the service.
Tether Expands Across Payments and Banking
Tether has also increased its activity in payments and financial platforms. The company recently led a $7 million Series A round for Pact Labs, alongside Blockchange Ventures and Lasagna.
The financing is aimed at payroll and payment infrastructure. Pact Labs is working with USAT, Tether’s dollar-backed stablecoin designed for the U.S. market.
Tether has also expanded in Latin American finance. The company contributed $20 million to a $197 million equity round for Argentine digital bank Ualá, adding another regulated financial platform to its investment portfolio.
The company still faces questions over USDT’s future status under the U.S. GENIUS Act. The law introduced a three-year compliance window for stablecoin issuers, while market attention remains on how foreign issuers will meet final requirements.
The ADGM recognition gives XAUT a defined route in Abu Dhabi’s regulated market. Tether is now building across tokenized gold, stablecoin payments, payroll systems, and digital banking while waiting for more clarity on USDT rules in the United States.
