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USDT’s Regulatory Milestone in Abu Dhabi Signals Broader Institutional Adoption

USDT’s Regulatory Milestone in Abu Dhabi Signals Broader Institutional Adoption

Author:
USDT News
Published:
2025-12-11 20:12:15
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In a landmark development for the digital asset ecosystem, the Abu Dhabi Global Market (ADGM) has significantly expanded its cryptocurrency regulatory framework by granting key approvals to Tether and Circle. This strategic move, announced in late 2025, positions Abu Dhabi as a leading hub for compliant digital asset innovation and marks a critical step toward mainstream institutional acceptance of stablecoins. The approval specifically designates Tether's USDT as an Accepted Fiat-Referenced Token (ARFT) across an expanded suite of blockchains, including Aptos, Celo, and TRON, building upon its existing approvals for Ethereum, Solana, and Avalanche. This regulatory clarity from a major global financial center is a powerful bullish signal for the entire cryptocurrency sector. It demonstrates a maturing regulatory landscape that is moving from skepticism to structured integration, providing the legal certainty that large-scale traditional finance (TradFi) institutions require to participate. For USDT, the world's largest stablecoin by market capitalization, this endorsement validates its operational and compliance frameworks in a jurisdiction renowned for its rigorous financial standards. The simultaneous approval for Circle's USDC further underscores ADGM's intent to create a comprehensive and competitive digital asset marketplace. This development is expected to catalyze increased liquidity, foster the development of sophisticated financial products like tokenized securities and decentralized finance (DeFi) protocols within a regulated sandbox, and attract substantial capital inflows from institutional investors seeking exposure to digital assets within a clear regulatory perimeter. The expansion to blockchains like Aptos and Celo indicates a forward-looking approach by regulators, acknowledging the multi-chain future of finance. Ultimately, this move by Abu Dhabi is not just about approving specific tokens; it's a clear indication that digital assets are being systematically woven into the fabric of global finance, with stablecoins like USDT acting as the foundational bridge between traditional and decentralized economies.

Abu Dhabi Expands Crypto Regulatory Framework with Tether and Circle Approvals

Abu Dhabi Global Market (ADGM) has significantly advanced its cryptocurrency regulatory framework by granting key approvals to Tether and Circle. Tether's USDT stablecoin now qualifies as an Accepted Fiat-Referenced Token (ARFT) across multiple blockchains, including Aptos, Celo, and TRON—expanding beyond its initial Ethereum, Solana, and Avalanche approvals. This move positions ADGM as a hub for compliant digital asset innovation.

Circle simultaneously secured a Financial Services Permission (FSP) license, enabling regulated stablecoin operations. The dual approvals signal Abu Dhabi's strategic push to attract institutional crypto players while maintaining rigorous oversight. "Recognition of USDT on major blockchains strengthens Abu Dhabi's role in digital finance," said Tether CEO Paolo Ardoino.

Crypto Hedge Funds Retreat to Stablecoins Ahead of FOMC Decision

Bitcoin holds above $92,000 after rebounding from a brief dip to $90,000, yet market sentiment remains fragile. Traders brace for volatility ahead of the December FOMC meeting as institutional players shift defensively.

On-chain data reveals a stark divergence: BTC balances on centralized exchanges decline while stablecoin reserves (USDT, USDC) swell. This mirrors classic risk-off behavior—hedge funds are building liquidity buffers rather than betting on directional moves.

Funding rates suggest subdued speculative activity. The market’s muted reaction to Bitcoin’s rebound underscores caution. Institutions appear positioned for policy-driven turbulence, not breakout rallies.

Mutuum Finance (MUTM) Gains Traction as a Promising Sub-$0.05 Crypto Ahead of Q1 2026

Mutuum Finance (MUTM), currently priced at $0.035, is emerging as a standout candidate among sub-$0.05 cryptocurrencies. Analysts speculate that Q1 2026 could mark a pivotal moment for the project, driven by its innovative decentralized lending protocol.

The platform enables structured on-chain lending and borrowing, allowing users to deposit ETH or USDT in exchange for interest-bearing mtTokens. Its dynamic borrowing framework features transparent loan-to-value ratios and liquidity provisions, with a $600 ETH deposit serving as a baseline example of potential growth.

Development milestones are accelerating, with the V1 testnet scheduled for Q4 2025 launch. The initial release will include Core features like lending pools, a liquidation system, and a debt engine.

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