If wired correctly, yes. The shield of the tonearm cable is the tonearm ground connection.So, do three pin XLR terminations negate the need for ground wires between the tonearm/SUTs and SUTs/phono stage?
Do XLR terminations result in better sound than RCA terminations?
There are two main advantages of the balanced line system. The first is to eliminate ground loops; usually not a problem for a phono input. But the other advantage is to eliminate interconnect cable colorations.
If you've ever heard audio engineers say something to the effect of 'interconnect cables don't affect the sound', its because in their world where everything is balanced, that statement is true. In the audiophile world, where RCA connections dominate, the you definitely hear cable differences.
So the one place to really get the cable right is the tonearm connection- doesn't matter how good the preamp, amps and speakers are; they cannot make up for a loss or coloration upstream.