cointelegraph.com
Tether’s USDt, the largest stablecoin by circulation, has secured a regulatory milestone in Abu Dhabi’s international financial center, opening the door for licensed institutions to use the token in regulated services.
Announced Monday, USDt ($USDT) was formally recognized as an “accepted fiat-referenced token,” allowing regulated firms in the Abu Dhabi Global Market (ADGM) to offer trading, custody and other services involving the stablecoin.
ADGM — an international financial center and free economic zone — has become a magnet for digital asset companies seeking clear rules and institutional access.
Tether CEO Paolo Ardoino said the designation “reinforces the role of stablecoins as essential components of today’s financial landscape,” a nod to their growing use in remittances, cross-border settlements and digital asset markets.
ADGM had already classified $USDT as an accepted virtual asset across issuance on Ethereum, Solana and Avalanche. The latest recognition extends that framework, potentially boosting $USDT’s usability for cross-border payments, institutional custody and settlement.
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Abu Dhabi targets stablecoins for finance
Tether’s $USDT isn’t the only stablecoin gaining traction in Abu Dhabi. Local regulators recently approved Ripple’s dollar-pegged RLUSD as an accepted fiat-referenced token, clearing the way for institutional use.
The development comes as expectations build around a separate initiative backed by some of Abu Dhabi’s largest financial players.
A consortium including ADQ — the emirate’s sovereign wealth fund — 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 and the UAE, more broadly, have emerged as key players in the developing stablecoin and digital asset markets, thanks to a relatively clear regulatory framework in a region already positioned as a global hub for commerce. ADGM has become a central venue for licensing exchanges, custodians and other crypto-focused firms seeking structured oversight.
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