Tether’s USDT stablecoin has officially been recognized as an Accepted Virtual Asset (AVA) by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM). This decision allows licensed entities operating within the ADGM to offer services related to Tether USDT. The milestone positions the stablecoin for broader integration into the UAE’s growing digital finance ecosystem.
Tether’s USDT Approved as Accepted Virtual Asset in Abu Dhabi Global Market
According to a recent blog post, the ADGM has officially granted Tether USDT the status of an Accepted Virtual Asset. This approval marks an important step for stablecoin in its adoption across regulated financial markets. With Tether USDT boasting a market capitalization exceeding $138 billion, this recognition solidifies its position as a key player in the digital asset market.
Licensed financial service providers within ADGM are now authorized to offer services related to Tether USDT, which include trading, storage, and other financial services. The approval is a move to foster the growth of digital assets in the UAE.
Following the development, Paolo Ardoino, Tether CEO commented,
“The UAE’s forward-thinking approach to virtual asset regulation sets a global benchmark, and we are proud that USDT can play a pivotal role in driving economic progress and digital transformation in the region. This approval highlights Tether’s dedication to building bridges between traditional and decentralized economies while ensuring security, trust, and efficiency for users worldwide.”
Integration Into The UAE Financial Ecosystem
The recognition of Tether USDT aligns with the UAE’s broader strategy to become a leading global hub for digital finance. The UAE has made substantial investments in blockchain technology and virtual asset regulation. Just last month, Ripple revealed its interest in launching a Dirham-backed stablecoin in the UAE, aligning with the country’s progressive digital asset regulations.
The inclusion of Tether USDT in the ADGM framework offers increased opportunities for financial service providers in the UAE to integrate stablecoins into their operations. Stablecoins provide a bridge between traditional financial systems and the emerging digital economy. This is key for the region’s future growth in digital assets.
Moreover, as of Q4 2024, USDT has achieved a notable milestone with over 109 million on-chain wallets holding the stablecoin. This level of adoption underscores the growing demand for stablecoins across global markets. Also, the number of wallets holding more than one cent of USDT has increased by 71% over the past year.
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