Michaela
Tether’s USDT, the world’s most widely circulated stablecoin, has achieved a key regulatory milestone in Abu Dhabi’s international financial center, gaining recognition as an accepted fiat-referenced token and enabling licensed institutions to offer regulated services using the digital asset.
Key Points
- USDT achieves Accepted Fiat-Referenced Token (AFRT) status in ADGM, enabling regulated institutional use.
- Multi-chain approval strengthens interoperability, liquidity, and usability for cross-border payments and settlement.
- The milestone reflects UAE’s leadership in digital asset regulation and collaboration between innovators and regulators.
Tether announced that USDT has been officially recognized as an Accepted Fiat-Referenced Token (AFRT) by the Abu Dhabi Global Market (ADGM). This designation permits licensed entities under the Financial Services Regulatory Authority (FSRA) of ADGM to conduct regulated activities using USDT across multiple blockchain networks, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON.
“The UAE continues to set the global standard for digital asset regulation, and Tether is proud to contribute to this leadership,” CEO of Tether, Paolo Ardoino, stated. “This milestone highlights Tether’s dedication to advancing financial inclusion and innovation on a global scale. Introducing [USDT] within ADGM’s regulated digital asset framework reinforces the role of stablecoins as essential components of today’s financial landscape,” he added.
ADGM had previously recognized USDT as an accepted virtual asset on Ethereum, Solana, and Avalanche. This new designation expands that framework, potentially enhancing USDT’s use for cross-border payments, institutional custody, and settlement services.
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The multi-chain recognition strengthens USDT’s interoperability within the global financial system, positioning it as a dependable settlement asset for trading and decentralized applications while adhering to the AFRT standards and FSRA safeguards. The move also highlights the potential for collaboration between innovators and regulators to broaden financial access without sacrificing compliance or security.
“Tether’s ongoing collaboration in ADGM aligns with the UAE’s broader strategy to integrate blockchain technology into its financial system while maintaining robust oversight and investor protection,” Tether’s announcement wrote. “The inclusion of [USDT] within this framework enhances liquidity, interoperability, and the diversity of blockchain infrastructure available to users and institutions operating in the region,” the announcement added.
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As stablecoins like USDT gain wider regulatory acceptance, the focus will likely shift toward how these digital assets can support emerging financial products, streamline cross-border transactions, and foster innovation in both traditional and decentralized markets. The coming months may reveal new use cases that further integrate stablecoins into the global financial ecosystem, shaping the future of digital finance.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
