Tether Gains Approval for Gold Token XAUT in Abu Dhabi... Expanding Regulatory Reach Beyond USDT

Tether Gold (XAUT) has been approved as a commodity by Abu Dhabi Global Market (ADGM), enabling regulated entities within ADGM to offer services related to tokenized gold assets. This follows ADGM's acceptance of Tether's dollar-pegged stablecoin USDT as a legal tender reference token, expanding Tether's regulated product offerings in the Middle East. The approval signifies tokenized gold assets are being integrated into formal financial services, with Tether CEO Paolo Ardoino stating the designation clarifies pathways for regulated firms to offer XAUT. ADGM emphasized the move will support business growth by broadening available products and services for financial institutions. Market indicators show strong growth, with XAUT's total value locked (TVL) rising over 3x to nearly $2.86 billion in the past year. Institutions like Ledn plan to incorporate XAUT as collateral for loans, allowing users to borrow funds without selling their tokenized gold holdings. This trend aligns with the broader tokenized real assets market, which now holds approximately $446 million in dispersed value, representing 13% of the $34.7 billion tokenized real assets market. ADGM's decision marks progress in integrating tokenized gold into formal financial systems, expanding Tether's regulated offerings in the Middle East.