ADGM Recognizes Tether Gold XAUT as an Accepted Spot Commodity
On July 20, the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) officially recognized Tether Gold (XAUT), the gold-backed digital token issued by Tether, as an Accepted Spot Commodity within the ADGM regulatory jurisdiction in Abu Dhabi.
According to a press release published by Tether, the decision followed discussions with ADGM aimed at demonstrating XAUT’s transparency, regulatory compliance and reliability. Recognition as an Accepted Spot Commodity provides a clearer legal framework for financial institutions operating within ADGM to offer products and services related to XAUT.
The decision applies specifically within the ADGM regulatory jurisdiction and does not automatically authorize XAUT-related services across the entire United Arab Emirates. Only companies that meet the applicable licensing requirements and obtain the necessary regulatory permissions will be allowed to provide such products or services.
The recognition of XAUT follows ADGM’s earlier decision to add the USDT stablecoin to its list of Accepted Fiat-Referenced Tokens.
Arvind Ramamurthy, Chief Market Development Officer at ADGM, said the recognition of XAUT would expand the range of products and services available to businesses operating within the financial centre. It also strengthens Abu Dhabi’s position as a financial hub actively developing a regulatory framework for stablecoins and blockchain-based tokenized assets.
Tether said the decision would broaden access to XAUT among institutional clients, financial institutions and regulated companies operating within ADGM. The company also confirmed that it would continue working with regulators, licensed institutions and regional partners to promote the responsible adoption of digital assets.
XAUT is an ERC-20 token issued by Tether on the Ethereum blockchain and traded on several major cryptocurrency exchanges. Each full XAUT token represents one fine troy ounce of physical gold allocated to a London Good Delivery-standard gold bar. As a result, the token’s value generally follows movements in the global gold price.
Tokenization makes gold easier to divide, transfer and trade, while also allowing it to be integrated into digital financial applications without removing the physical asset backing.
By late July, XAUT had strengthened its position as the world’s largest gold-backed digital token by market capitalization, reaching nearly $2.86 billion. This corresponds to approximately 701,833 ounces of gold held by the company in specialized storage facilities in Switzerland.
With total value locked approaching $3 billion, Tether Gold is increasingly becoming an alternative for investors seeking exposure to gold through blockchain-based tokens rather than traditional methods such as purchasing physical bullion, gold certificates or exchange-traded funds.
