Key Highlights
- Tether’s USDT is now recognized as an Accepted Fiat-Referenced Token (AFRT) within the Abu Dhabi Global Market (ADGM).
- The approval expands the token’s availability across multiple major blockchains for licensed financial activities in the free zone.
- This move reinforces Abu Dhabi’s position as a compliant hub for compliant digital finance.
Tether, the issuer of USDT, announced today that its flagship stablecoin (USDT) has received recognition as an Accepted Fiat-Referenced Token (AFRT) within the regulatory jurisdiction of the Abu Dhabi Global Market (ADGM).
This development, resulting from ongoing engagement with the ADGM’s Financial Services Regulatory Authority (FSRA), allows licensed entities in the free zone to conduct regulated activities involving USDT across major blockchain networks.
Expanded blockchain support
The said list of blockchains includes Aptos, Celo, Cosmos, Near, Polkadot, Tezos, TON, and TRON. The expansion of regulatory coverage aims to support Abu Dhabi’s standing as a globally compliant hub for digital finance and increase interoperability within the Middle Eastern financial system.
The recognition formally includes USDT under ADGM’s digital asset framework, allowing Authorized Persons licensed by the FSRA to utilize the stablecoin on a broad array of networks.
The decision expands upon ADGM’s previous approvals for USDT operating on the Ethereum, Solana, and Avalanche blockchains. By extending recognition to a multi-chain foundation, the ADGM is creating a comprehensive regulatory environment for one of the world’s most widely used stablecoins.
Tether said the approval process involved working closely with the FSRA to demonstrate the operational strength, compliance focus, and transparency of the company’s activities.
Ardoino praises UAE standard
Paolo Ardoino, CEO of Tether, commented on the development, stating, “The UAE continues to set the global standard for digital asset regulation, and Tether is proud to contribute to this leadership. This milestone highlights Tether’s dedication to advancing financial inclusion and innovation on a global scale.”
He added, “Introducing USDT within ADGM’s regulated digital asset framework reinforces the role of stablecoins as essential components of today’s financial landscape. It also creates fresh opportunities for collaboration and growth throughout the Middle East. By extending recognition to USDT on several major blockchains, ADGM further strengthens Abu Dhabi’s position as a global hub for compliant digital finance.”
Tether has, for a while, been identified as the largest entity in the digital assets sphere, standing at a point where traditional finance meets the developing cryptocurrency market. Its stablecoin, USDT, is pegged to the US dollar and functions as a critical liquidity and settlement asset for global crypto trading. For years, the company’s operational transparency and the backing reserves themselves have been called into question publicly and by regulators.
Tether allegedly bought 40K Bitcoin
In related news regarding the management of Tether’s reserve assets, a public claim circulated recently via X alleging that the company had purchased 43,033 Bitcoin. Although Tether regularly discloses updates in its composition of reserves, such a purchase, if confirmed, would fall in line with the company’s long-term public strategy of diversifying its reserves beyond cash equivalents to include assets like Bitcoin.
This has commonly been mentioned as a part of the firm’s strategy to keep the asset base strong, although they have many times raised discussion on the concentration of market holdings.
Boosting liquidity and interoperability
The recognition of multi-chain USDT within the ADGM will increase liquidity and interoperability in the global financial system. The stablecoin, for this reason, can be used as a secure channel of settlement for trading and decentralized applications in one of the most respected digital asset jurisdictions in the world.
This regulatory clarity will enable ADGM-authorized persons to extend their support to a wider range of blockchain networks while potentially unlocking new services and markets for a regional and international client base.
The move also aligns with the UAE’s wider national strategy to embed blockchain into its core financial system. The decision aims to enhance financial inclusion and diversification without compromising on essential compliance and security standards by putting in place robust oversight and investor protection in the ADGM framework.
Also Read: Tether Scales Back Fundraising Plan to $5B Amid Investors Hesitation
