- Abu Dhabi’s Financial Services Regulatory Authority (FSRA) has approved Tether’s USDT stablecoin as an accepted virtual asset within the Abu Dhabi Global Market (ADGM).
- The approval facilitates USDT-powered services and reinforces the UAE’s commitment to fostering a regulated crypto ecosystem.
What happened: USDT gets green light in Abu Dhabi markets
On Dec. 10, Tether announced that its U.S. dollar-pegged stablecoin, USDT, received approval from the Financial Services Regulatory Authority (FSRA) to operate within the Abu Dhabi Global Market (ADGM). This milestone allows FSRA-regulated entities and individuals to utilise USDT on Ethereum, Solana, and Avalanche.
The FSRA’s approval is part of its effort to regulate virtual asset service providers (VASPs) in line with anti-money laundering and anti-terrorism financing rules. Tether CEO Paolo Ardoino emphasised the significance of this step in fostering financial innovation and inclusion across the Middle East.
This decision follows Tether’s growing presence in the region, including partnerships to expand stablecoin use in the UAE and plans to launch a dirham-pegged stablecoin. As the world’s largest stablecoin with a $138 billion market cap, USDT’s adoption continues to expand, underscoring its critical role in modern finance.
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Why it’s important
The approval of USDT in Abu Dhabi demonstrates the UAE’s strategic push to become a global hub for cryptocurrency and blockchain technology. By integrating a highly regulated framework for virtual assets, the region is attracting key players like Tether and paving the way for innovative financial tools.
This move not only strengthens the adoption of stablecoins in the Middle East but also sets a precedent for regulatory clarity and collaboration. With the UAE’s proactive stance on virtual assets, other nations might adopt similar approaches, potentially accelerating global cryptocurrency acceptance. Tether’s expansion also signals an increasing demand for stable, reliable digital assets in cross-border transactions and decentralised finance.
