CMC News

Tether's $USDT Wins Regulatory Approval in Abu Dhabi

Financial regulators in Abu Dhabi have granted formal recognition to Tether's stablecoin, permitting licensed institutions to incorporate the token into custody and trading operations. The Abu Dhabi Global Market announced the designation Monday, expanding regulated access to the world's largest stablecoin by circulation.

The classification as an accepted fiat-referenced token allows companies operating under ADGM licenses to build services around $USDT. The decision extends earlier approvals covering specific blockchain networks to a broader framework supporting multiple use cases.

#Tether CEO Paolo Ardoino characterized the move as validation of stablecoins' essential role in contemporary finance. The tokens have gained adoption for international money transfers, payment settlement, and serving as stable value stores within volatile #cryptocurrency markets.

Licensed firms can now offer institutional custody, facilitate cross-border payments, and integrate the stablecoin into settlement systems under regulatory oversight. The designation provides legal clarity for companies building financial infrastructure around #dollar-pegged digital assets.

#Ripple's RLUSD stablecoin received similar recognition from Abu Dhabi authorities, establishing multiple approved tokens for institutional operations. The parallel approvals signal regulatory openness to competing stablecoin providers rather than favoring a single issuer.

Local financial institutions are developing their own digital currency products. A group including ADQ sovereign wealth fund, International Holding Company, and First Abu Dhabi Bank announced intentions to launch a dirham-backed #stablecoin pending central bank authorization. The initiative would create a locally issued alternative pegged to the UAE currency rather than the dollar.