Tether stated that its U.S. dollar-pegged stablecoin is now a recognized virtual asset by the Financial Services Regulatory Authority of Abu Dhabi.
Tether is now accessible to approved individuals and businesses governed by the Abu Dhabi Global Market, per the notification made on December 10.
The FSRA, an Abu Dhabi market regulator, governs the Abu Dhabi Global Market. The ADGM, which functions as a financial-free zone in the United Arab Emirates, oversees the FSRA as a market regulator.
The FSRA’s authority to oversee the nation’s virtual asset service providers includes USDT’s approval. VASPs must follow regulations pertaining to countering the financing of terrorism and anti-money laundering.
Tether said in its release that the clearance allows FSRA-licensed persons and businesses to offer USDT-powered services in the region.
Such services are pre-approved by the agency. Thanks to this acceptance, users in the ADGM can now use USDT on Ethereum, Solana, and Avalanche. Tether CEO Paolo Ardoino made the following observation:
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 not only validating the importance of stablecoins as critical tools for modern finance but also opening new doors for collaboration and growth across the Middle East.”
With a market value of more than $138 billion, USDT is the biggest U.S. dollar-pegged stablecoin in the world.
Because of its widespread use in the cryptocurrency and payments markets, it has been able to outperform rival stablecoins and help Tether achieve record-breaking revenue levels.
At the beginning of the fourth quarter of 2024, there were more over 109 million USDT on-chain wallets, according to a study released by Tether on December 9. Meanwhile, over 400 million wallets have received USDT in total.
The Middle East and North Africa region has grown in importance as a market elsewhere. Tether announced its growth in the United Arab Emirates in May this year, partnering with RAK Digital Assets Oasis, a web3-focused platform.
The partnership sought to encourage using stablecoins and Bitcoin in technology in Ras Al Khaimah, the sixth-largest city in the United Arab Emirates. Tether unveiled plans for a dirham-pegged stablecoin in August.
