The Abu Dhabi Global Market (ADGM), the international financial center of the United Arab Emirates’ capital, has formally recognized Tether Gold (XAUT) as an Accepted Spot Commodity. The decision allows any firm licensed within the ADGM to offer regulated services tied to XAUT, provided they hold the required spot commodity authorizations. Each XAUT token is backed one-to-one by one fine troy ounce of physical gold from a London Good Delivery bar, with bullion stored primarily in secure Swiss vaults. The token operates on both the Ethereum and Tron blockchains, enabling global, traceable transfers of gold ownership.
The recognition follows a process of engagement between Tether and ADGM authorities focused on operational transparency, compliance standards, and financial soundness. Tether CEO Paolo Ardoino stated that the move “creates new space for firms with the relevant regulatory authorizations to work with a physical gold-backed token,” calling it “an important step for tokenized real-world assets and for the growth of regulated digital finance in the Middle East.” ADGM’s Chief Market Development Officer Arvind Ramamurthy added that the recognition broadens the product range available in the hub and strengthens Abu Dhabi’s digital asset ecosystem.
The approval builds on ADGM’s earlier recognition of USDT as an accepted fiat reference token, signaling a progressive regulatory approach toward Tether’s products. It also comes as the market for tokenized real-world assets surges past $31 billion in distributed value, up from roughly $6.6 billion a year ago. XAUT itself holds a market capitalization of nearly $2.5 billion, cementing its position as one of the largest tokenized gold instruments. Tether has indicated it will continue working with regulators and industry participants across the UAE to foster compliant adoption of digital assets.
