Crypto Gloom

Tether Gold secures spot status in Abu Dhabi global market

briefly

Tether Gold has been recognized by ADGM as a permitted spot product, expanding access to regulated tokenized gold in the UAE.

Tether Gold secures spot status in Abu Dhabi global market

Financial technology company Tether announced that Tether Gold (XAU₮) has been recognized as a spot-approved instrument by the Abu Dhabi Global Market, the international financial hub of Abu Dhabi. This designation allows companies operating within ADGM to offer tokenized gold products subject to applicable regulatory clearances.

This recognition follows ongoing engagement between Tether and ADGM regulators and provides agencies with a clearer regulatory path for incorporating XAU₮ into their service offerings. It also reflects the continued evolution of the UAE’s digital asset policy towards a framework that is practical and suitable for institutions.

Each XAU₮ token represents 1 troy ounce of gold held in a London Good Delivery bar, providing access to physical gold through a transferable blockchain-based tool.

This approval builds on the financial services regulator’s early recognition of USD₮ as an approved fiat reference token and expands the range of Tether products that can be supported by approved ADGM institutions. This demonstrates how direct collaboration between regulators and digital asset companies can facilitate on-chain representation of existing assets while maintaining regulatory compliance and market integrity.

Tokenized Assets and Institutional Demand

Demand for tokenized real-world assets continues to expand as institutions seek more efficient ways to access and manage their existing assets. The total value of decentralized tokenized assets has grown to exceed $31 billion, up from about $6.6 billion a year ago. XAU₮ applies this model to gold, combining the speed and portability of digital tokens with physical backup.

Tether said it will maintain collaborative efforts with regulators and licensing partners in the UAE and the wider region to promote responsible adoption of digital assets.

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About the author

As a dedicated journalist at MPost, Alisa specializes in the broad areas of cryptocurrency, AI, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.

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As a dedicated journalist at MPost, Alisa specializes in the broad areas of cryptocurrency, AI, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.

more articles