Tether Gold Recognized as Accepted Spot Commodity in Abu Dhabi Financial Center
Vexoda Newsroom
Tether Gold (XAUT) has been recognized by the Abu Dhabi Global Market as an Accepted Spot Commodity, allowing regulated firms to offer services involving tokenized gold. This move follows earlier acce
In a significant development for the cryptocurrency market, Tether Gold (XAUT) has been recognized by Abu Dhabi Global Market (ADGM) as an Accepted Spot Commodity. This recognition permits regulated firms operating in ADGM to offer services involving tokenized gold assets if they hold the necessary regulatory permissions.
The move comes after ADGM previously accepted Tether’s USDt, a stablecoin pegged to the US dollar, as an Accepted Fiat Referenced Token. This latest designation is part of ADGM's broader strategy to support and expand the use of tokenized real-world assets in its financial center, which is one of the largest international financial hubs in the Middle East.
Paolo Ardoino, CEO of Tether, commented that this recognition provides a clearer path for regulated firms to offer XAUT. ADGM stated it aims to support business growth by expanding the range of products and services available to companies operating within its jurisdiction. DefiLlama data shows that Tether Gold’s total value locked (TVL) has more than tripled over the past year, from approximately $826 million to around $2.86 billion.
The recognition of tokenized gold is part of a broader trend in the industry towards the adoption and integration of tokenized commodities. According to RWA.xyz data, 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.
Beyond trading and custody, Tether Gold is finding new uses in various sectors. In June, Bitcoin lending platform Ledn announced plans to add XAUT as loan collateral later this year. This move allows clients to borrow against their tokenized gold holdings without selling them, potentially increasing the utility of these assets for investors.
The recognition by ADGM signals a growing acceptance and integration of stablecoins and tokenized commodities in traditional financial markets. Traders should closely monitor how other financial centers may follow suit, as this could significantly impact the broader adoption and value of Tether Gold and similar assets.
For traders interested in staying informed about market developments, key areas to watch include regulatory changes in major financial hubs, further integration of tokenized commodities into traditional lending platforms, and any potential expansion by ADGM or other financial centers.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.