Tether’s USDT Gets Regulatory Nod In Abu Dhabi To Expand Institutional Use Across 9 Major Chains

USDT issuer Tether has been awarded a 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 announcement, Tether said that its USDT token has been formally recognized as an “accepted fiat-referenced token.” 

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

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 ADGM’s previous recognition of USDT on Ethereum, Solana, and Avalanche. 

Tether said in its statement that the recent recognition will create “fresh opportunities for collaboration and growth throughout the Middle East.”

ADGM Approval Reinforces Role Of Stablecoins In Modern Financial System, Tether CEO Says

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

2025 has seen strong growth in the stablecoin market, with the space’s collective capitalization breaking through $300 billion for the first time in history this year.

Stablecoin market cap (Source: DefiLlama)

That growth was largely due to the friendlier regulatory climate in the US and the July signing of the GENIUS Act into law by President Donald Trump. 

The regulatory clarity gained from the GENIUS Act’s signing has led to a stablecoin frenzy, with multiple firms 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 accounts for approximately 60.12% of the stablecoin market. 

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

“By extending recognition to USDT on 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 DeFi Hub, Targets Stablecoins

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

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

The recent approvals come amid growing expectations around a separate initiative that is backed by some of the largest financial players in Abu Dhabi. 

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

Abu Dhabi has also started a broader push to become a global crypto hub. Just yesterday, Binance, the largest crypto exchange by 24-hour trading volumes, disclosed that it has secured full authorization to operate its global platform within the ADGM framework. 

“ADGM is one of the most respected financial regulators globally, and holding an FSRA license under their gold standard framework shows that Binance meets the highest international standards for compliance, governance, risk management, and consumer protection,” said Binance Co-CEO Richard Teng.