Tether’s USDT receives approval as an accepted virtual asset in Abu Dhabi.
The Abu Dhabi Global Market (ADGM) regulators have approved Tether’s USDT as an accepted virtual asset, paving the way for USDT-related financial services. The ADGM’s Financial Services Regulatory Authority has officially recognized Tether’s USDT stablecoin as an Accepted Virtual Asset (AVA).
This approval enables licensed financial service providers within the ADGM to offer services involving USDT, fostering its integration into regulated financial ecosystems. The recognition spans USDT issued on various blockchains, including Ethereum, Solana, and Avalanche, aligning with the United Arab Emirates’ vision to become a global hub for digital finance.
With a market capitalization exceeding $138 billion, USDT’s designation as an AVA reinforces its standing as the largest stablecoin in the sector. ADGM’s decision highlights the growing importance of stablecoins in bridging traditional finance and digital asset markets.
The integration of USDT within the ADGM framework could bolster its position as a financial innovation hub and support economic diversification efforts in the UAE. However, while stablecoins have increasingly merged with traditional finance under controlled regulatory environments, concerns remain. The United States Financial Services Oversight Council (FSOC) has expressed reservations about stablecoins, citing risks to financial stability due to inadequate risk management standards.
According to the FSOC, the stablecoin market is “heavily concentrated,” Tether alone accounts for roughly 70% of the sector’s “total market value.” The council has called for stronger risk management measures to address vulnerabilities, such as exposure to bank runs and systemic risks.
In November, Tether injected over $5 billion into the cryptocurrency market during a 72-hour minting spree, sparking debates about its influence on the market. Data from the blockchain analytics platform Spot On Chain outlined the timeline of these issuance events. On November 6, Tether minted $1 billion USDT, coinciding with Bitcoin’s surge to a record high of $76,200.
This issuance propelled USDT’s market capitalization from approximately $124 billion in early November to $132 billion by November 26, ultimately reaching $138 billion by December 10 following the ADGM approval.
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