Tether’s USDT Stablecoin Gets Regulatory Green Light in Abu Dhabi

USDT issuer Tether has achieved key 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 announcementTether said its USDT token has been officially recognized as a “fiat-referenced accepted token.”

The company said this milestone means that Abu Dhabi Global Market (ADGM) regulated companies can offer trading, custody and other services involving USDT on multiple blockchains, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON and TRON.

Tether’s USD₮ recognized as a Fiat-referenced token accepted in Abu Dhabi ADGM for use on several major blockchains
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– 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.

Recent approval builds on 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 Role of Stablecoins in Modern Financial System, Says Tether CEO

Stablecoins are digital assets linked to an underlying asset, usually fiat currencies such as the US dollar.

The year 2025 saw strong growth in the stablecoin market, with the collective capitalization of the space this year surpassing $300 billion for the first time in history.

Stablecoin market capitalization (Source: ChallengeLlama)

This growth is largely due to the more favorable regulatory climate in the United States and the July signing of the GENIUS Act by President Donald Trump.

The regulatory clarity achieved through the signing of the GENIUS Act has led to a stablecoin frenzy, with several companies announcing plans to launch or explore stablecoins.

Tether’s USDT maintains a dominant position. With its capitalization of more than $185.737 billion, the token represents approximately 60.12% of the stablecoin market.

Commenting on the latest ADGM approval, Tether CEO Paolo Ardoino said that “the introduction of USDT as part of ADGM’s regulated digital assets reinforces the role of stablecoins as essential components of today’s financial landscape.”

“By extending recognition of USDT across several major blockchains, ADGM further strengthens Abu Dhabi’s position as a global hub for compliant digital finance,” he added.

Abu Dhabi aims to become a DeFi hub, targets stablecoins

Tether’s USDT is not the only stablecoin gaining traction in Abu Dhabi.

Recently, local regulators also approved Ripple’s dollar-pegged stablecoin RLUSD as an accepted fiat-referenced token. This also paved the way for its institutional use.

The recent approvals come amid growing expectations around a separate initiative backed by some of Abu Dhabi’s biggest financial players.

A consortium of players, including the emirate’s sovereign wealth fund ADQ, International Holding Company and First Abu Dhabi Bank, have announced plans to create a dirham-pegged stablecoin, pending approval from the UAE Central Bank.

Abu Dhabi has also launched a broader initiative to become a global crypto hub. Just yesterday, Binance, the largest cryptocurrency exchange by 24-hour trading volumes, revealed that it had received full authorization to operate its global platform under the ADGM.

“ADGM is one of the most respected financial regulators in the world, and holding an FSRA license as part of its framework shows that Binance meets the highest international standards for compliance, governance, risk management and consumer protection,” said Richard Teng, Co-CEO of Binance.

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