USDT Gains Official Recognition as Accepted Fiat-Referenced Token in Abu Dhabi Global Market

Abu Dhabi just handed Tether a golden ticket—and traditional finance might need to adjust its monocle.

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has formally greenlit USDT as an "Accepted Fiat-Referenced Token." This isn't a quiet nod; it's a regulatory stamp that carves out a legitimate lane for the world's largest stablecoin within a major international financial hub.

What This Regulatory Nod Actually Means

Forget vague "explorations" or "sandboxes." This classification sets a concrete framework. It means licensed entities within the ADGM can now integrate and transact with USDT under a recognized regulatory umbrella. The move effectively bridges a gap between digital asset liquidity and institutional-grade compliance, offering a template other jurisdictions will likely scrutinize.

The Ripple Effect Beyond the Sand

Abu Dhabi's play isn't happening in a vacuum. It signals a pivot where financial centers compete to attract crypto-native capital and businesses by providing clarity, not just skepticism. It grants Tether a formidable institutional credential while challenging other stablecoins to level up their regulatory game. For traders and funds, it simplifies the on-ramp—liquidity meets legitimacy.

One cynical finance jab? It's almost refreshing to see a regulator acknowledge the elephant—or rather, the $110 billion stablecoin—in the room, while traditional banks still debate whether to custody Bitcoin. Progress, it seems, sometimes bypasses the usual committee meetings.

This approval cuts through the regulatory fog. It doesn't just validate a token; it pressures the global financial status quo to evolve or get left watching from the sidelines.

Tether gains stablecoin approval from  Abu Dhabi regulator

The approval confirms that the ADGM now rates USDT as an Accepted Fiat-Referenced Token. This designation allows regulated firms inside the financial zone to actually deploy the asset in supervised activities, ranging from settlement to asset servicing.

The most important thing about this development is not the endorsement, but the fact that USDT can now be used inside ADGM on networks including Aptos, Celo, Cosmos, Near, Polkadot, TRON, Tezos, Kaia, and TON, extending what was previously a narrower set of permissions limited to Ethereum, Solana, and Avalanche.

Tether’s chief executive, Paolo Ardoino, believes that the approval is a recognition of USDT’s role within international settlement markets and as a gateway for financial inclusion, sentiments known to align closely with Abu Dhabi’s current positioning.

From Tether’s perspective, the approval is a great win as the UAE upgrade enhances network interoperability, allowing USDT to MOVE between decentralized applications and institutional systems without the usual fragmentation issues.

On the other hand, Abu Dhabi continues to show that it is focused on hosting infrastructure, not speculation, as it presents itself as a destination for credible crypto finance and a potential bridge between global capital and blockchain-based settlement rails.

As reported by Cryptopolitan earlier today, Mohammed Al Shamsi, a senior official at the UAE’s National Security Agency, declared that “Bitcoin has become the key pillar in the future of financing,” referencing the Emirates’ commitment to the crypto space.

Ripple’s RLUSD has received its own recognition inside ADGM

USDT’s approval is happening weeks after Ripple’s dollar-backed stablecoin, RLUSD, was cleared for use inside the Abu Dhabi Global Market (ADGM). This allowance came after it was formally recognized as an Accepted Fiat-Referenced Token, which helped it establish a regulatory foothold in one of the world’s most tightly regulated crypto hubs.

According to Ripple, the Financial Services Regulatory Authority (FSRA) designation means that firms licensed by the authority can now use RLUSD for regulated activities. The approval puts the stablecoin on the same level as a small group of tokens permitted inside the ADGM’s ring-fenced financial system.

For Ripple, it’s an important development and represents progress into the Middle East, where banks and payment firms have been open to adopting tokenized settlement rails.

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