Abu Dhabi continues to solidify its position as a leading global hub for digital assets with the recent regulatory approval granted to Tether's USDt (USDT) within the Abu Dhabi Global Market (ADGM). The largest stablecoin by circulation has been recognized as an "Accepted Fiat-Referenced Token" (AFRT). This key milestone allows authorized entities licensed by the Financial Services Regulatory Authority (FSRA) of ADGM to offer regulated activities involving USDT on several major blockchains.
The approval extends USDT's regulated use to nine additional blockchains, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON. This builds upon ADGM's previous recognition of USDT on Ethereum, Solana, and Avalanche. The multi-chain recognition enhances interoperability across the global financial system, enabling USDT to function as a reliable settlement asset for trading and decentralized applications. It also maintains the AFRT criteria and safeguards required by the FSRA.
Paolo Ardoino, CEO of Tether, praised the UAE for setting a global standard for crypto regulation. He stated that Tether is proud to contribute to this leadership. Tether emphasized that the approval results from its long-term engagement with the FSRA to demonstrate transparency, resilience, and regulatory compliance.
The ADGM, an international financial center and free economic zone, has become a magnet for digital asset companies seeking clear rules and institutional access. The FSRA functions as a primary regulatory body with the responsibility of overseeing and regulating financial services and markets within the ADGM. Its roles include developing and enforcing regulatory frameworks, issuing licenses to financial institutions, and overseeing compliance with relevant laws and regulations.
This development comes just weeks after Ripple's RLUSD stablecoin secured similar approval. Binance also recently secured approval to provide trading services in the region. These approvals highlight Abu Dhabi's strategic embrace of stablecoins and digital assets. A consortium including ADQ, the emirate's sovereign wealth fund, International Holding Company, and First Abu Dhabi Bank has announced plans for a dirham-pegged stablecoin, pending approval from the UAE Central Bank.
In June 2025, the FSRA implemented amendments to its digital asset regulatory framework. The amendments introduced key updates relating to the treatment and regulation of Virtual Assets (VAs) within ADGM. These include a revised process for recognizing Accepted Virtual Assets (AVAs), updated capital requirements and fees applicable to VA firms, and the introduction of a specific product intervention power in relation to virtual assets. The FSRA has also formalized its position prohibiting the use of privacy tokens and algorithmic stablecoins within ADGM.
The UAE has emerged as a key player in the developing stablecoin and digital asset markets, thanks to a relatively clear regulatory framework. The recognition of USDT as an accepted fiat-referenced token reinforces the role of stablecoins as essential components of today's financial landscape. This milestone is expected to boost USDT's usability for cross-border payments, institutional custody, and settlement.
