Tether’s USDT, which is the most circulated stablecoin, has achieved a significant regulatory status in Abu Dhabi’s international financial hub, allowing licensed firms to utilize the token for regulated services.

It was announced on Monday that USDT is now acknowledged as an “accepted fiat-referenced token,” enabling regulated companies in the Abu Dhabi Global Market (ADGM) to provide trading, custody, and various services related to the stablecoin.

The ADGM, recognized as a hub for digital asset businesses looking for clear regulations and institutional engagement, has previously classified USDT as an accepted virtual asset across its issuance on platforms like Ethereum, Solana, and Avalanche. This latest recognition enhances USDT’s potential for usage in cross-border transactions, institutional custody, and settlement.

Quote by Tether CEO: “This acknowledgment reinforces the importance of stablecoins as integral parts of the modern financial landscape,” highlighting their increasing relevance in remittances, international settlements, and the digital asset sector.

Abu Dhabi is not just focusing on Tether’s USDT; local authorities have also recently approved Ripple’s dollar-pegged RLUSD as an accepted fiat-referenced token for institutional purposes. Additionally, a consortium consisting of ADQ—the emirate’s sovereign wealth fund, the International Holding Company, and the First Abu Dhabi Bank—has announced plans for a dirham-pegged stablecoin, pending approval from the UAE Central Bank.

Abu Dhabi is becoming a crucial player in the evolving markets of stablecoins and digital assets, benefiting from a clear regulatory environment that positions it as a global commercial center.