Key Takeaways:
- Tether Gold (XAU₮) has become an Accepted Spot Commodity in Abu Dhabi Global Market (ADGM).
- Licensed ADGM firms can offer XAU₮ services under the financial center’s regulatory framework.
- The approval further bolsters the credibility of tokenized gold in the more than $31 billion RWA market.
Tether’s gold-backed digital asset, Tether Gold (XAU₮), has marked another regulatory significant milestone in the Middle East by becoming an Accepted Spot Commodity on Abu Dhabi Global Market (ADGM). This step will allow licensed entities within ADGM to offer services relating to XAU₮, thereby paving the way for institutional access to a tokenized gold.
ADGM Expands Support for Tokenized Gold
It comes on the heels of continued partnership between Tether and the ADGM regulators to showcase the strength, transparency, and compliance frameworks underpinning XAU₮.
As long as financial institutions receive the necessary regulatory authorizations, they can incorporate XAU₮ into their products and services under the new designation. The move also bolsters Abu Dhabi’s reputation as a top global hub for stablecoins and regulated digital asset creation.
Previously, the Financial Services Regulatory Authority of ADGM has already given approval to USD₮ as an Accepted Fiat Referenced Token. The inclusion of XAU₮ will further diversify the financial center’s regulated offering.
Read More: Tether Powers Georgia’s Official GEL₮ National Crypto Launch
Gold Meets Blockchain Infrastructure
One XAU₮ token equates to one troy ounce of real gold held in a London Good Delivery gold bar. Unlike regular gold ownership, with tokens you can move the asset on-chain, and they are directly backed by allocated physical gold.
It is an efficient fusion of the strength of gold and blockchain, enabling investors to transfer, trade and complete the settlement process globally without involving traditional settlement mechanisms. Each gold reserve will carry assignable serial numbers, known purity information and be known for their weight and can be redeemed for gold in physical form.
Middle East Pushes Tokenized Asset Adoption
Paolo Ardoino, CEO of Tether, stated the UAE is becoming a world leader in the regulation of digital assets, whereas the decision from ADGM provides additional opportunities for regulated entities to create blockchain-based gold products.
There is always a need to allow for responsible innovation and for companies to have access to a wider range of financial products that are regulated, ADGM Chief Market Development Officer Arvind Ramamurthy said.
The nod comes on the heels of an increased institutional appetite for tokenizing real-world assets (RWAs). Tether said that the total dollar value of tokens of all RWAs on the blockchain has surpassed $31 billion, up from around $6.6 billion a year ago.
Read More: Tether Rolls Out New Self-Custodial Wallet
Tether Deepens Its UAE Presence
The green light follows Tether’s increasing interactions with regulators in the UAE, as it expands beyond stablecoins to the tokenization of commodities.
With more and more institutions becoming interested in digital asset alternatives to holding and transferring traditional assets, gold-backed digital assets are getting a second wind. Tether’s addition of XAU₮ to the ADGM-regulated commodities program is effectively introducing tokenized gold to the playbook of institutional applications for blockchain, besides stablecoins and other financial products.
The post Tether’s XAU₮ Wins ADGM Approval appeared first on CryptoNinjas.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments