USDT issuer Tether has been granted major regulatory status in Abu Dhabi, opening the door for licensed institutions to use its stablecoin in regulated services across multiple blockchain networks.
In a recent one announcementTether said its USDT token has been formally recognized as an “accepted fiat referenced token.”
The company said the milestone means that regulated firms within the Abu Dhabi Global Market (ADGM) can offer trading, custody and other services involving USDT on various blockchains, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON and TRON.
Tether’s USD₮ Recognized as an Accepted Fiat Reference Token in Abu Dhabi’s ADGM for Use on Several Major Blockchains
More information: https://t.co/PKmF7w5aUx— Tether (@Tether_to) December 8, 2025
The ADGM functions as a special economic zone and international financial center in the UAE capital, and operates under its own regulatory and legal system.
The recent approval builds on that of ADGM previous recognition of USDT on Ethereum, Solana and Avalanche.
Tether said in its statement that the recent recognition “will create new opportunities for collaboration and growth across the Middle East.”
ADGM approval strengthens the role of stablecoins in the modern financial system, says Tether CEO
Stablecoins are digital assets tied to an underlying asset, usually fiat currency such as the US dollar.
In 2025, the stablecoin market has grown significantly, with the collective capitalization of the space breaking $300 billion this year for the first time in history.
Market capitalization of Stablecoin (Source: DefiLlama)
That growth was largely due to the friendlier regulatory environment in the US and President Donald Trump’s signing of the GENIUS Act in July.
The regulatory clarity brought by the signing of the GENIUS Act has led to a stablecoin frenzy, with multiple companies announcing plans to launch or explore stablecoins.
Tether’s USDT retains a dominant position. With a capitalization of over $185.737 billion, the token accounts for approximately 60.12% of the stablecoin market.
Commenting on the latest ADGM approval, Paolo Ardoino, CEO of Tether, said that “the introduction of USDT within ADGM’s regulated digital asset framework strengthens the role of stablecoins as essential components of today’s financial landscape.”
“By expanding USDT’s recognition on several major blockchains, ADGM further strengthens Abu Dhabi’s position as a global hub for compliant digital finance,” he added.
Abu Dhabi wants to become a DeFi Hub, focuses on Stablecoins
Tether’s USDT isn’t the only stablecoin gaining popularity in Abu Dhabi.
Recently, local regulators also approved Ripple’s RLUSD dollar-pegged stablecoin as an accepted fiat reference token. This also paved the way for its institutional use.
The recent approvals come amid growing expectations surrounding a separate initiative backed by some of Abu Dhabi’s biggest financial players.
A consortium of players including sovereign wealth fund ADQ, International Holding Company and First Abu Dhabi Bank have announced plans for a dirham-pegged stablecoin, pending approval from the UAE Central Bank.
Abu Dhabi has also begun a broader push to become a global crypto hub. Yesterday, Binance, the largest crypto exchange by 24-hour trading volumes, announced that it has been granted full permission to operate its global platform within the ADGM framework.
“ADGM is one of the most respected financial regulators in the world, and holding an FSRA license under their gold standard framework demonstrates that Binance adheres to the highest international standards for compliance, governance, risk management and consumer protection,” said Richard Teng, co-CEO of Binance.
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