In a significant development for the cryptocurrency industry, Tether has announced that the Financial Services Regulatory Authority (FSRA) of Abu Dhabi has approved its U.S. dollar-pegged stablecoin, USDT, as an accepted virtual asset. This approval positions Tether within the regulatory framework of the Abu Dhabi Global Market (ADGM), a renowned financial-free zone in the United Arab Emirates (UAE).
The announcement highlights the FSRA’s commitment to regulating virtual asset service providers (VASPs) in line with global anti-money laundering (AML) and counter-terrorism financing (CTF) standards. With this milestone, Tether’s stablecoin, USDT, becomes available to authorized individuals and entities within the ADGM.
The FSRA’s regulatory oversight ensures that Tether’s integration into the financial ecosystem of Abu Dhabi adheres to stringent compliance measures. This development enables FSRA-licensed participants to offer USDT-based services in the region, paving the way for broader adoption of stablecoins under a regulated framework.
Through this approval, users within the ADGM can now leverage USDT on popular blockchain networks, including Ethereum, Solana, and Avalanche. This integration expands the accessibility and utility of Tether’s stablecoin in a region that is increasingly becoming a key player in the global cryptocurrency landscape.
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Paolo Ardoino, CEO of Tether, emphasized the importance of this milestone: “This milestone underscores Tether’s commitment to fostering global financial inclusion and innovation. By bringing USD₮ to the forefront of ADGM’s regulated virtual asset framework, we are not only validating the importance of stablecoins as critical tools for modern finance but also opening new doors for collaboration and growth across the Middle East.”
As the world’s largest U.S. dollar-pegged stablecoin, USDT has achieved a market capitalization exceeding $138 billion. Its widespread adoption across payment systems and cryptocurrency platforms has cemented its dominance in the stablecoin market, contributing to Tether’s record-breaking revenue figures.
A recent report released by Tether on December 9 revealed that on-chain wallets holding USDT surpassed 109 million at the start of Q4 2024, while total wallets that have ever received USDT exceeded 400 million. These numbers underscore the growing demand for stablecoins as a reliable digital asset in global financial ecosystems.
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The approval of USDT in Abu Dhabi aligns with Tether’s broader expansion strategy in the Middle East and North Africa (MENA) region. In May 2024, Tether partnered with the web3-focused platform RAK Digital Assets Oasis to promote the adoption of Bitcoin and stablecoins in Ras Al Khaimah, UAE’s sixth-largest city.
This partnership marked Tether’s initial foray into the UAE market, aiming to bridge the gap between traditional finance and emerging blockchain technologies. The addition of Abu Dhabi to its regulatory footprint further strengthens Tether’s position as a leading player in the region.
Abu Dhabi’s proactive approach to regulating virtual assets has positioned the UAE as a hub for cryptocurrency innovation and adoption. The FSRA’s approval of USDT not only enhances the credibility of stablecoins but also signals the UAE’s readiness to embrace the evolving digital economy.
The approval of USDT by Abu Dhabi’s FSRA is more than just a regulatory milestone; it’s a testament to the growing importance of stablecoins in modern finance. With its expanding reach and robust compliance framework, Tether is set to unlock new opportunities for collaboration and growth in the MENA region and beyond.