Tether’s USDT stablecoin has received formal regulatory recognition in Abu Dhabi Global Market, allowing licensed firms to incorporate the token into regulated financial services.
ADGM announced that USDT has been classified as an accepted fiat-referenced token, enabling companies operating under its licences to use the stablecoin for custody, trading, settlement and payment-related activities. The decision expands earlier approvals that were limited to specific blockchain networks, creating a broader framework for multiple use cases.
Under the new designation, licensed institutions can offer institutional-grade custody of USDT, facilitate cross-border payments and integrate the stablecoin into settlement systems within ADGM’s regulatory perimeter.
Paolo Ardoino, chief executive of Tether, said the approval reflects the growing role of stablecoins in modern financial infrastructure. He noted that USDT is increasingly used for international transfers, payment settlement and as a stable store of value in volatile crypto markets.
ADGM regulators said the move supports innovation while maintaining oversight, as demand grows for regulated access to stablecoins among financial institutions and service providers in the region.
The approval marks a further step in Abu Dhabi’s strategy to position itself as a hub for digital assets and regulated blockchain-based financial services.
