Tether's USDT achieves landmark status as an Accepted Virtual Asset in Abu Dhabi's ADGM, enabling regulated cross-border payments.
Tether’s USDT, the largest stablecoin in the cryptocurrency industry, has achieved a significant milestone: It has been legally recognized as an Accepted Virtual Asset (AVA) in Abu Dhabi.
Tether shared the news on Tuesday, saying that the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) bestowed the honor on USDT $1.00 24h volatility: 0.1% Market cap: $138.34 B Vol. 24h: $266.41 B after stringent regulatory scrutiny.
The stablecoin can now be used by licensed companies within the Abu Dhabi Global Market (ADGM) to facilitate cross-border payments. These companies are also authorized to offer additional services related to USDT, enabling its seamless integration into regulated financial ecosystems.
The recognition applies to USDT issued across multiple blockchains, including Ethereum, Solana, and Avalanche. It also aligns with the United Arab Emirates’ broader strategy of establishing itself as a global hub for digital finance.
With a market capitalization exceeding $138 billion, this milestone further cements USDT’s status as a significant player in the digital asset market. The stablecoin has gained significant traction among traditional financial institutions, particularly for its efficiency in facilitating cross-border transactions.
With its new recognition in Abu Dhabi, USDT is poised to support a wide range of innovative applications in the region. Tether’s CEO, Paolo Ardoino, commented on the development, emphasizing that USDT’s elevated status in the city will drive further innovation.
“This milestone underscores Tether’s commitment to fostering global financial inclusion and innovation. By bringing USD₮ to the forefront of ADGM’s regulated virtual asset framework, we are validating the importance of stablecoins as critical tools for modern finance and opening new doors for collaboration and growth across the Middle East,” said Ardoino.
Before the recent achievement, Tether demonstrated substantial market expansion through its issuance activities. In November, the company executed a significant supply increase, minting more than $5 billion worth of USDT within a 72-hour period.
Blockchain analytics platform Spot On Chain revealed that the first tranche of USDT was minted on November 6, when Tether introduced approximately $1 billion worth of the stablecoin into circulation.
This minting spree propelled USDT’s market capitalization from around $124 billion in early November to $132 billion by November 26, eventually reaching approximately $138 billion by December 10, following the ADGM’s approval.
Tether described the ADGM recognition of USDT as an Accepted Virtual Asset as a significant milestone for the virtual asset industry in the region. According to the company, the approval confirms that USDT meets the regulator’s standards, facilitating its integration into the services offered by licensed entities within the ADGM framework.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
