In a landmark decision, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has officially recognized Tether’s USDT stablecoin as an Accepted Virtual Asset (AVA).
Tether’s USD₮ Recognized as Accepted Virtual Asset in the Abu Dhabi Global Market (ADGM)
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— Tether (@Tether_to) December 10, 2024
The decision positions USDT as a key player in the United Arab Emirates (UAE) ambition to become a global digital finance hub. With this regulatory approval, the licensed financial institutions operating within the ADGM can now offer services that integrate USDT.
This achievement extends to USDT issued on blockchains such as Ethereum, Solana, and Avalanche, further solidifying its role as the world’s largest stablecoin with a market capitalization exceeding $138 billion.
USDT Approval Boosts Abu Dhabi’s Digital Finance Ecosystem
The ADGM’s approval highlights the growing acceptance of stablecoins as a bridge between traditional finance and digital asset markets. The integration aligns with the UAE’s economic diversification goals and bolsters Abu Dhabi’s position as a financial hub for innovation.
However, the global stablecoin market remains under scrutiny. The U.S. Financial Services Oversight Council (FSOC) has raised concerns over the market concentration, with Tether holding approximately 70% of the sector’s total value.
In November, Tether minted over $5 billion in USDT within 72 hours, sparking debates about its influence on the crypto market. This surge coincided with Bitcoin reaching an all-time high of $76,200 and boosted USDT’s market cap from $124 billion by early December, following the ADGM’s approval.
The ADGM’s recognition of USDT marks a crucial milestone in stablecoin regulations. While the region is striving to become a financial hub, the approval of USDT will play a crucial role in the expansion of the rapidly growing crypto space.
Also Read: Ripple’s RLUSD Stablecoin Gets Approval From NYDFS
