The Abu Dhabi Global Market (ADGM) has recently officially recognized the USDT issued by Tether as an 'Accepted Fiat-Referenced Token (AFRT)', enabling local institutions to legally operate USDT's custody, trading, and settlement services. This not only expands the usage of USDT but also strengthens the UAE's strategy to create a global compliant crypto hub.
USDT has received 'fiat-level' regulatory approval in Abu Dhabi, with nine major public chains released.
Tether's announcement indicates that the Abu Dhabi regulatory authority FSRA has officially included USDT in the AFRT framework, allowing licensed institutions to legally conduct trading, custody, and settlement related to stablecoin financial services. This approval covers multiple public chains such as Aptos, Near, and TRON, aiming to establish a multi-chain, open, and legally protected usage environment.
ADGM previously only recognized the issuance of USDT on Ethereum, Solana, and Avalanche; this significant expansion paves the way for multi-chain demand for institutional-level stablecoins, enabling financial institutions to handle cross-chain payments, transactions, and asset circulation more flexibly.
UAE's stablecoin strategy upgrade: from USDT to Dirham stablecoin.
USDT is not the only stablecoin being promoted by Abu Dhabi; local regulatory authorities have recently also approved the US dollar stablecoin RLUSD launched by Ripple, allowing it to provide services within the regulated framework of the financial center.
At the same time, Abu Dhabi Sovereign Fund (ADQ), International Holding Company (IHC), and Abu Dhabi First Bank are forming a consortium to plan the launch of a Dirham (AED) stablecoin, pending approval from the central bank.
This move signifies that the UAE is building a complete ecosystem of diverse stablecoins, from USDT to the tokenization of local currencies, gradually integrating stablecoins into the core infrastructure of cross-border settlement, trade finance, and the digital asset market.
(The UAE Sovereign Fund is preparing to issue a UAE Dirham stablecoin, reportedly to be issued by Abu Dhabi Bank)
Paolo Ardoino: Stablecoins have become key infrastructure in modern finance.
Tether CEO Paolo Ardoino stated that ADGM's recognition further reaffirms the core role of stablecoins in global finance.
Incorporating USDT into the regulated framework of ADGM not only strengthens the role of stablecoins as financial infrastructure but also brings more innovation and collaboration opportunities to the Middle Eastern market.
Tether emphasizes that this recognition demonstrates its transparency and compliance framework, making USDT one of the first internationally recognized stablecoins to receive multi-chain regulatory approval, which helps strengthen global financial liquidity.
Following in Binance's footsteps, Abu Dhabi is set to become the next crypto compliance hub.
Yesterday, cryptocurrency exchange Binance also announced it has obtained operational authorization from ADGM, and Binance will operate legally as three legal entities: an exchange, a clearinghouse, and a broker, fully adopting the same financial structure as traditional markets, including custody, settlement, over-the-counter services, etc., and is expected to officially launch its business on January 5, 2026.
Binance co-CEO Richard Teng described the high regulatory standards of ADGM, reflecting the company's commitment to compliance, governance, risk management, and consumer protection.
(Binance becomes the first cryptocurrency exchange to obtain a global license under the Abu Dhabi regulatory framework)
Such synchronized progress shows that Abu Dhabi is creating an international crypto financial center that can parallel New York or Singapore by improving regulations, attracting leading institutions, and actively deploying stablecoins.
This article reports that Tether USDT has received regulatory approval in Abu Dhabi, as the UAE builds a global compliance hub, first appearing in Chain News ABMedia.
