Tether’s USDT Stablecoin Approved as Accepted Virtual Asset in Abu Dhabi
Tether’s USDT stablecoin has received approval as an Accepted Virtual Asset (AVA) by the Abu Dhabi Global Market (ADGM), as announced in a statement on Dec. 10.
This significant decision was granted by the Financial Services Regulatory Authority (FSRA), allowing licensed entities within the jurisdiction to offer services involving USDT under ADGM’s regulatory framework.
The approval represents a major milestone for Tether, facilitating the smooth integration of USDT into ADGM’s approved financial services ecosystem. Tether CEO Paolo Ardoino highlighted the growing importance of stablecoins in modern finance and the company’s role in bridging traditional and decentralized economies.
Ardoino also emphasized the progressive regulatory stance of the UAE, setting a global benchmark and positioning USDT as a crucial tool in advancing the region’s digital transformation and economic growth.
Back in August, Tether had revealed its plans to launch a Dirham-pegged stablecoin, reaffirming its commitment to supporting the UAE’s vision as a global economic hub.
With a market cap of over $138 billion, Tether’s USDT is currently the largest stablecoin, controlling approximately 70% of the market.
Token Disclosure Standards and Collaboration with Polygon Labs
ADGM is also working closely with Polygon Labs to establish a global token disclosure process for the web3 ecosystem.
This initiative is aimed at enhancing the Distributed Ledger Technology (DLT) Foundations Regulations, introduced in 2023, to simplify token issuance and support Decentralized Autonomous Organizations (DAOs).
Hamad Al Mazrouei, CEO of the ADGM Registration Authority, highlighted that the token disclosure process is designed to promote transparency and enhance trust in blockchain technologies.
He further mentioned that the partnership with Polygon Labs aligns with ADGM’s objective to solidify Abu Dhabi’s position as a prominent blockchain and web3 innovation hub.
Similarly, Sandeep Nailwal, co-founder of Polygon, expressed:
“We’re not only establishing new benchmarks for transparency and disclosure but also creating a foundation for trust that allows users, developers, and institutions worldwide to engage with blockchain systems confidently.”
This collaboration between ADGM and Polygon Labs signifies a commitment to transparency and trust in the blockchain industry, paving the way for further advancements in the digital economy.