• Tether’s USDT is now officially recognized as an AFRT in the ADGM jurisdiction.

• The approval supports USDT’s use across various blockchains for licensed operations.

• This development includes eight major networks and builds on prior approvals for Ethereum, Solana, and Avalanche, with over $100 billion in USDT circulation globally.

Discover how Tether USDT ADGM approval boosts stablecoin adoption in the UAE. Learn about expanded blockchain support and regulatory benefits for digital finance professionals.

What is the significance of Tether USDT ADGM approval?

Tether USDT ADGM approval marks a pivotal step in integrating stablecoins into regulated financial frameworks. Issued by Tether, USDT is now classified as an Accepted Fiat-Referenced Token (AFRT) by the ADGM’s FSRA, allowing licensed firms in the Abu Dhabi free zone to utilize it for compliant activities. This recognition underscores the UAE’s commitment to fostering innovation while maintaining robust oversight in the digital asset space.

How does this approval expand USDT’s blockchain support?

The ADGM approval extends USDT’s regulatory greenlight to eight additional blockchains: Aptos, Celo, Cosmos, Near, Polkadot, Tezos, TON, and TRON. Previously, USDT operated under ADGM recognition on Ethereum, Solana, and Avalanche. This multi-chain expansion, as detailed in Tether’s official announcement, facilitates greater interoperability and liquidity for authorized persons in the region. According to FSRA guidelines, this framework ensures stablecoins like USDT meet stringent standards for transparency and reserve backing. Industry analysts note that such approvals could increase USDT’s market penetration in the Middle East, where digital finance is projected to grow by 20% annually through 2030, per reports from global financial bodies. Paolo Ardoino, Tether’s CEO, emphasized the collaborative effort with FSRA, stating it demonstrates Tether’s focus on operational resilience and global compliance.

Tether’s USDT gains regulatory approval from ADGM’s FSRA, allowing licensed use on major blockchains like TRON and Aptos.

Key Highlights

• Tether’s USDT is now recognized as an Accepted Fiat-Referenced Token (AFRT) within the Abu Dhabi Global Market (ADGM).
• The approval expands the token’s availability across multiple major blockchains for licensed financial activities in the free zone.
• This move reinforces Abu Dhabi’s position as a compliant hub for compliant digital finance.

Tether, the issuer of USDT, announced that its flagship stablecoin has received recognition as an Accepted Fiat-Referenced Token (AFRT) within the regulatory jurisdiction of the Abu Dhabi Global Market (ADGM).

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This development, resulting from ongoing engagement with the ADGM’s Financial Services Regulatory Authority (FSRA), allows licensed entities in the free zone to conduct regulated activities involving USDT across major blockchain networks.

Expanded blockchain support

The list of supported blockchains includes Aptos, Celo, Cosmos, Near, Polkadot, Tezos, TON, and TRON. This expansion of regulatory coverage aims to support Abu Dhabi’s standing as a globally compliant hub for digital finance and increase interoperability within the Middle Eastern financial system.

The recognition formally includes USDT under ADGM’s digital asset framework, allowing Authorized Persons licensed by the FSRA to utilize the stablecoin on a broad array of networks. 

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The decision expands upon ADGM’s previous approvals for USDT operating on the Ethereum, Solana, and Avalanche blockchains. By extending recognition to a multi-chain foundation, the ADGM is creating a comprehensive regulatory environment for one of the world’s most widely used stablecoins.
Tether stated the approval process involved working closely with the FSRA to demonstrate the operational strength, compliance focus, and transparency of the company’s activities.

Frequently Asked Questions

What blockchains does the Tether USDT ADGM approval cover?

The approval encompasses Aptos, Celo, Cosmos, Near, Polkadot, Tezos, TON, and TRON, in addition to Ethereum, Solana, and Avalanche. This multi-chain recognition enables licensed ADGM entities to engage in regulated USDT transactions, promoting secure and efficient digital asset operations across diverse networks.

Why is Tether USDT important in the UAE’s digital finance landscape?

Tether USDT serves as a stable, dollar-pegged asset that bridges traditional and crypto finance in the UAE. With ADGM approval, it supports compliant trading, settlements, and DeFi applications, aligning with the nation’s vision for blockchain integration and positioning Abu Dhabi as a leading hub for regulated innovation.

Key Takeaways

• Regulatory Milestone: USDT’s AFRT status in ADGM validates its role in compliant finance.
• Multi-Chain Expansion: Now supports 11 blockchains, enhancing liquidity for regional markets.
• Strategic Alignment: Bolsters UAE’s global position; users should monitor FSRA updates for implementation.

Ardoino praises UAE standard

Paolo Ardoino, CEO of Tether, commented on the development, stating, “The UAE continues to set the global standard for digital asset regulation, and Tether is proud to contribute to this leadership. This milestone highlights Tether’s dedication to advancing financial inclusion and innovation on a global scale.”
He added, “Introducing USDT within ADGM’s regulated digital asset framework reinforces the role of stablecoins as essential components of today’s financial landscape. It also creates fresh opportunities for collaboration and growth throughout the Middle East. By extending recognition to USDT on several major blockchains, ADGM further strengthens Abu Dhabi’s position as a global hub for compliant digital finance.” 

Tether has long been a dominant player in the digital assets sector, bridging traditional finance and the evolving cryptocurrency market. Its stablecoin, USDT, pegged to the US dollar, acts as a key liquidity and settlement tool for global crypto trading. The company has faced scrutiny over its reserves and transparency, but recent attestations from independent auditors confirm full backing by cash and equivalents.

Tether reserve management updates

Recent discussions in financial circles highlight Tether’s ongoing efforts to diversify its reserves. Public attestations show a mix of U.S. Treasuries, cash, and other low-risk assets supporting USDT’s peg. Such strategies aim to maintain stability amid market volatility, with Tether’s transparency reports providing quarterly insights into its $120 billion-plus reserve base.

These efforts align with Tether’s public commitments to a robust asset base, though market observers continue to analyze the implications for overall crypto ecosystem stability.

Boosting liquidity and interoperability

The recognition of multi-chain USDT within the ADGM will enhance liquidity and interoperability in the global financial system. USDT can now serve as a reliable settlement medium for trading and decentralized applications in a premier digital asset jurisdiction. 

This regulatory clarity empowers ADGM-authorized entities to support a broader range of blockchain networks, potentially unlocking new services for regional and international clients.

The initiative complements the UAE’s national strategy to integrate blockchain into its financial infrastructure. It promotes financial inclusion and diversification while upholding compliance and security through the ADGM’s oversight mechanisms.

Also Read: Tether Unveils Edge-AI Framework as S&P Cuts Score

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Conclusion

The Tether USDT ADGM approval represents a landmark achievement for stablecoin regulation, integrating USDT across expanded blockchains like TRON and Aptos under FSRA oversight. This framework not only solidifies Abu Dhabi’s role in compliant digital finance but also sets a precedent for global adoption. As the crypto landscape evolves, stakeholders in the UAE and beyond can anticipate enhanced opportunities for secure, innovative financial services.