Tether’s USD₮ Now Accepted in ADGM, Enhancing Opportunities for Licensed Entities
Tether, a leading player in the digital assets industry, has made a significant announcement regarding the acceptance of USD₮ by the Financial Services Regulatory Authority (FSRA) as an Accepted Virtual Asset (AVA) in the Abu Dhabi Global Market (ADGM). This development paves the way for Authorised Persons licensed by the FSRA to offer pre-approved services related to USD₮, further solidifying the region’s position as a hub for digital asset innovation. The move comes at a time when the United Arab Emirates (UAE) is witnessing a surge in the adoption of digital currencies, showcasing the country’s proactive stance towards merging traditional and digital finance.
The UAE, known for its economic stability with its dirham pegged to the U.S. dollar, serves as a global model for financial stability. Tether’s USD₮, which boasts a market cap exceeding $138 billion and is utilized by over 400 million users worldwide, acts as a reliable bridge between traditional fiat systems and digital economies, complementing the region’s established stability. The increasing adoption of cryptocurrencies in the UAE since 2022 has positioned cities like Abu Dhabi and Dubai as frontrunners in crypto innovation and blockchain technology, fostering a conducive environment for digital assets to thrive.
Paolo Ardoino, CEO of Tether, expressed his enthusiasm about the milestone, stating, “This milestone underscores Tether’s commitment to fostering global financial inclusion and innovation. By bringing USD₮ to the forefront of ADGM’s regulated virtual asset framework, we are not only validating the importance of stablecoins as critical tools for modern finance but also opening new doors for collaboration and growth across the Middle East. The UAE’s progressive approach to virtual asset regulation sets a global benchmark, and we are proud that USD₮ can play a pivotal role in driving economic progress and digital transformation in the region. This approval highlights Tether’s dedication to building bridges between traditional and decentralized economies while ensuring security, trust, and efficiency for users worldwide.”
The recognition of USD₮ as an Accepted Virtual Asset by ADGM marks a significant moment in the evolution of virtual assets in the region. This approval signifies that USD₮ meets the stringent standards set by ADGM, facilitating its seamless integration into the services offered by licensed entities in ADGM and contributing to the diversification and modernization of the UAE’s financial landscape.
With Tether’s USD₮ now officially accepted in ADGM, licensed entities in the region have a new avenue for offering services related to this widely-used stablecoin, further propelling the UAE’s position as a leader in digital asset innovation. This move not only showcases the country’s forward-thinking approach to virtual asset regulation but also underscores the importance of stablecoins in modern finance. As the adoption of digital currencies continues to rise globally, the UAE’s proactive stance positions it at the forefront of financial innovation, creating a conducive environment for digital assets to flourish.