Tether’s USDT has recently achieved a major milestone as the US dollar-pegged stablecoin was approved by the FSRA of the ADGM as an accepted virtual asset. This development shows just how far stablecoins have come in getting their place in regulated financial markets.
USDT’s Outreach Expands in Abu Dhabi
The FSRA, the ADGM’s regulatory body, permitted USDT use by regulated individuals and entities within its jurisdiction. The move has been part of the wider FSRA VASP regulatory framework in the region. The regulator requires all virtual asset service providers to maintain strict anti-money laundering and combating the financing of terrorism guidelines for operating in the use of virtual assets.
This approval allows FSRA-licensed entities to incorporate the USDT into their operations across Ethereum, Solana, and Avalanche networks. It also underlines how important stablecoins are in encouraging innovation and inclusion within the financial ecosystem.
Boost for Regional Crypto Adoption
Paolo Ardoino, Tether’s CEO, commented on the approval:
“This milestone underlines Tether’s commitment to driving financial inclusion and innovation around the world. By bringing USD₮ into ADGM’s regulated framework, we prove the role of stablecoins as an essential tool for modern finance while opening opportunities for growth across the Middle East”.
The move will, therefore, allow financial service providers in the ADGM to offer products and services based on USDT and thus increase the adoption of stablecoins in the region.
Record Adoption and Market Leadership
USDT remains the leading U.S. dollar-pegged stablecoin globally, with a market cap exceeding $138 billion. A recent report from Tether showed that the number of on-chain wallets holding USDT has surpassed 109 million in Q4 2024, while over 400 million wallets have transacted with the stablecoin since its creation. These figures further cement USDT’s position in the global crypto ecosystem.
Strengthening Tether’s Role in MENA
The Middle East and North Africa (MENA) region continues to grow as a priority market for Tether. Earlier in 2024, Tether partnered with RAK Digital Assets Oasis to promote Bitcoin and stablecoin adoption in Ras Al Khaimah. The company also announced plans for a dirham-pegged stablecoin, signaling its commitment to deepening its footprint in the UAE’s evolving digital asset landscape.
This Abu Dhabi regulatory milestone cements Tether’s influence in the region and puts USDT at the forefront of driving financial innovation.
