The recognition allows regulated firms in Abu Dhabi Global Market to offer services involving Tether Gold as tokenized commodities gain broader adoption.
XAUT, Tether's gold token, was recognized as an accepted spot commodity within Abu Dhabi's ADGM financial center. Companies registered in ADGM will be able to offer services linked to XAUT, subject to their own corresponding regulatory authorizations. The tokenized real-world asset market exceeds $31 billion, compared to approximately $6.6 billion recorded a year ago.
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Crypto whales are increasing their exposure to tokenized gold despite recent weakness in spot gold prices, with on-chain data showing large withdrawals of Tether Gold (XAUT) from major cryptocurrency exchanges. Blockchain analytics platform Onchain Lens reported that asset manager Abraxas Capital withdrew about 3,931 XAUT, valued at approximately $15.96 million, from Bitfinex, OKX, Bybit, and Binance.
Tether confirmed a partnership with Ledn to introduce XAUT-backed loans later in 2026. Eligible users will gain access to liquidity without selling gold exposure, while the service excludes Canada and the European Union due to regulatory restrictions. The initiative strengthens the role of tokenized gold within crypto lending markets.
Tether Gold (XAU₮) is now live on crypto lending platform Ledn, with XAU₮-backed loans planned for later in 2026. The integration marks a significant expansion of utility for the tokenized gold asset, which carries a market capitalization near $2.5 billion, as Ledn positions itself to offer gold-collateralized borrowing alongside its existing bitcoin-backed loan products.
Tether is expanding the utility of its tokenized gold product, Tether Gold (XAUT), by partnering with crypto lending platform Ledn, marking another step in the companys strategy to broaden the real-world use cases of digital assets backed by physical commodities. Ledn announced that it now supports Tether Gold (XAUT) alongside Bitcoin (BTC) and Tethers USDT stablecoin on its platform.
USDT issuer Tether and crypto lender Ledn have laid out plans to let holders of Tether Gold (XAUT) borrow against the it later in the year, which would open a lending channel taking advantage of the stablecoin issuer's $23 billion physical gold reserve.
The integration of tokenized gold into crypto lending could enhance financial flexibility and diversify investment options, impacting market dynamics. Tether expands gold reserve use as Ledn supports tokenized gold XAUT.
Ledn has added Tether Gold as loan collateral, expanding crypto lending into tokenized gold and real-world asset markets.
Tether will phase out Alloy by Tether and its gold-backed aUSDT token after reviewing user activity and market demand. Existing users have three months to unwind positions and recover their XAUT collateral.
Tether winds down Alloy and aUSDT after weak demand, shifting focus to XAUT, USDT and higher-liquidity products across its larger ecosystem.