Tether Receives Virtual Asset License in Abu Dhabi
Tether, one of the largest companies in the cryptocurrency industry, announced that USDT has been recognized as an “Approved Virtual Asset (AVA)” by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM).
This approval allows licensed entities operating under the FSRA to offer previously approved services related to USDT, reinforcing the region’s leadership in digital asset innovation. The announcement reflects the increasing adoption of digital currencies in the United Arab Emirates (UAE) and the country’s proactive approach to integrating traditional and digital finance.
The UAE Dirham serves as a global benchmark for economic stability due to its peg to the US Dollar. Tether's USDT, the most widely used stablecoin with a market capitalization exceeding $138 billion, complements this stability by providing a reliable and efficient bridge between traditional fiat systems and digital economies, accessed by over 400 million users worldwide.
Since 2022, the adoption of cryptocurrencies in the UAE has rapidly accelerated. This forward-thinking regulatory framework has positioned cities like Abu Dhabi and Dubai as global leaders in crypto innovation and blockchain technology, creating an evolving ecosystem for digital assets.
Tether's Influence on the Digital Transformation of the Middle East
Tether CEO Paolo Ardoino stated that this development reinforces the commitment to promoting global financial inclusion and innovation. Ardoino remarked, “By bringing USDT to the forefront of ADGM's regulated virtual asset framework, we not only confirm the critical importance of stablecoins as essential tools for modern finance, but we also open new doors for collaboration and growth in the Middle East.”
The UAE's progressive virtual asset regulation sets a global standard and ensures that USDT plays a key role in driving economic advancement and digital transformation in the region, highlighting Tether’s determination to build bridges between traditional and decentralized economies and provide secure, reliable, and efficient solutions for users.
The recognition of USDT as an Approved Virtual Asset by the ADGM represents a significant milestone in the evolution of virtual assets in the region. This approval confirms that USDT meets the standards set by the ADGM, facilitating seamless integration with the approved services of licensed entities in ADGM and supporting the diversification and modernization of the UAE's financial landscape.