Tether has secured recognition for its Tether Gold (XAUT) token as an Accepted Spot Commodity within the Abu Dhabi Global Market, clearing the way for authorized firms in the financial center to offer services tied to the gold-backed digital asset under ADGM’s regulatory framework, according to a Monday statement.

XAUT is a tokenized gold product issued by Tether that gives holders ownership of one fine troy ounce of physical gold per token, with the bullion stored in secure vaults, mainly in Switzerland.

The token has a market value of nearly $2.5 billion and is issued on both the Ethereum (ERC-20) and Tron (TRC-20) blockchains, allowing investors to buy, transfer and trade gold digitally while retaining rights to allocated London Good Delivery bars.

According to the company, the approval follows close collaboration with ADGM to demonstrate its compliance standards and operational transparency.

The recognition provides a formal regulatory framework for XAUT in the financial center and further strengthens Tether’s footprint in the UAE as the country continues developing its digital asset ecosystem. Tether Gold is backed on a one-to-one basis by physical gold, with each token representing one troy fine ounce of gold from a London Good Delivery bar.

Tether said the latest approval expands on ADGM’s previous recognition of USDT and highlights the increasing adoption of tokenized real-world assets among institutional investors.

The company said it will continue working with regulators and industry partners across the Middle East to support regulated digital asset markets.