In an historic milestone, Tether USDT stablecoin has been approved as an acceptable virtual payment medium by the Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA). In a Tuesday blog post, the stablecoin issuer – Tether – confirmed the landmark development, saying licensed service providers within the ADGM can now offer offerings tied to USD₮.
This helps enhance its integration into regulated financial platforms. Meanwhile, according to the announcement, the development covers USDT issued on multichain, including popular ones like Ethereum, Solana and Avalanche. Tether promises to continuously align with the United Arab Emirates’ goal to become a strong player in the international scene.
Tether bridges the gap between digital economy and traditional finance
Based on reports, ADGM’s approval underscores the growing importance of stablecoins in bridging the gap between traditional finance and the digital asset sector. At press time, Tether USDT is the largest stablecoin by market cap, boasting a valuation exceeding $138 billion. Its inclusion as an accepted medium of payment within the region reinforces its market position, ensuring more growth.
The UAE is known for its economic stability, partly due to the pegging of its dirham currency to the dollar. Tether USDT, according to reports, aligns with this stability through its ability to provide a stable bridge between digital economies and traditional finance systems. The country’s adoption of a progressive regulatory framework also contributes to this feat.
Since 2022, reports show that crypto adoption in the country has soared rapidly. This has established top cities like Abu Dhabi and Dubai as global hubs for crypto innovation and blockchain technology. Likewise, it fosters a strong ecosystem for digital assets to thrive.
Tether CEO Paolo Ardoino shares some insights into the development. He acknowledged how the milestone reflects Tether’s commitment to achieving global financial inclusion and innovation. According to Ardoino, the inclusion of Tether into the ADGM’s regulated virtual asset framework validates its significance as a stablecoin. More so, the CEO says the development shows how stablecoins can be critical tools for modern finance.
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