Tether’s USDT gains major regulatory approval in Abu Dhabi, strengthening stablecoin adoption in the UAE
Tether’s USDT — the world’s most widely used stablecoin — has reached a significant regulatory milestone in Abu Dhabi’s international financial hub, positioning the token for broader use in the United Arab Emirates’ fast-growing digital asset sector.
The Abu Dhabi Global Market (ADGM) announced Monday that USDT has been officially recognized as an “accepted fiat-referenced token.” In practical terms, that means licensed institutions operating within ADGM can now offer regulated trading, custody solutions, and other services involving USDT.
The approval offers another sign that the UAE is becoming one of the most proactive jurisdictions in building clear, institution-friendly rules around digital assets. ADGM, which functions as both an international financial center and a free economic zone, has steadily attracted global crypto and fintech firms looking for stability and regulatory clarity.
Paolo Ardoino, CEO of Tether, welcomed the designation, saying it highlights the increasing role stablecoins play in global finance — particularly in fast, low-cost remittances, cross-border payments and digital markets.
Before this announcement, ADGM had already categorized USDT as a permitted virtual asset across major blockchain networks including Ethereum, Solana and Avalanche. The new status extends that framework and could expand the stablecoin’s use among institutional players seeking compliant settlement and custody solutions.
Abu Dhabi accelerates its stablecoin strategy
USDT isn’t the only stablecoin gaining momentum in the UAE. Regulators in Abu Dhabi also recently approved Ripple’s RLUSD — a fiat-backed token pegged to the U.S. dollar — for institutional use.
In addition, several of Abu Dhabi’s most influential financial entities are working on a homegrown stablecoin initiative. A consortium that includes ADQ (the emirate’s sovereign wealth fund), International Holding Company, and First Abu Dhabi Bank has revealed plans for a dirham-pegged stablecoin, pending sign-off from the UAE Central Bank.
Together, these efforts reflect the UAE’s broader ambition to become a leading global center for regulated digital finance. With clear rules and an appetite for innovation, Abu Dhabi is positioning itself as a key hub for stablecoins, digital assets, and the next generation of financial infrastructure.
