ADGM classifies USDt as an accepted fiat-referenced token, enabling licensed firms to offer regulated custody and trading
Tether’s USDT the worlds largest stablecoin by circulation, has achieved a significant regulatory milestone in Abu Dhabi, as the Abu Dhabi Global Market (ADGM) formally recognized it as an accepted fiat-referenced token. This designation allows licensed companies in the financial hub to offer regulated services including trading, custody, and settlements using USDT.
The ADGM a leading international financial center and free economic zone, has increasingly become a hub for digital asset firms seeking transparent regulations and institutional access. With this recognition, USDT can now be used in regulated frameworks, enhancing its role in cross-border payments, remittances, and institutional digital asset operations.
Previously, USDT had already been classified as an accepted virtual asset across Ethereum, Solana, and Avalanche networks. The latest recognition broadens its usability under ADGM’s regulatory oversight, signaling growing acceptance of stablecoins as mainstream financial instruments.
The move aligns with Abu Dhabi’s broader strategy to integrate stablecoins into its financial ecosystem. Ripple’s RLUSD has also been recognized as an accepted fiat-referenced token, paving the way for institutional adoption of digital dollars. Meanwhile, a consortium of local financial players—including ADQ, First Abu Dhabi Bank, and the International Holding Company—plans to introduce a dirham-pegged stablecoin, pending UAE Central Bank approval.
As the global stablecoin market surpasses $300 billion, Abu Dhabi’s regulatory clarity positions it as a key regional hub for digital assets, attracting exchanges, custodians, and other crypto-focused firms seeking structured oversight. With USDT now officially recognized, the emirate is reinforcing its role in bridging regulated financial infrastructure with blockchain innovation.
This development marks a major step for stablecoins in the UAE, highlighting both institutional adoption and regulatory maturity in the region’s digital finance landscape.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.