Tether’s USDT, the world’s largest U.S. dollar-pegged stablecoin, has been officially approved as an accepted virtual asset by Abu Dhabi’s Financial Services Regulatory Authority (FSRA). The approval, announced on December 10, marks a significant development in the regulation of virtual asset service providers (VASPs) within the Abu Dhabi Global Market (ADGM), a prominent financial-free zone in the United Arab Emirates.

This regulatory milestone allows FSRA-licensed individuals and entities to offer USDT-powered services in the region. These services are pre-approved under the regulatory framework, ensuring compliance with anti-money laundering and combating the financing of terrorism requirements. As a result, authorized users within the ADGM can utilize USDT on popular blockchain networks such as Ethereum, Solana, and Avalanche.

Paolo Ardoino, Tether’s CEO, highlighted the significance of this achievement, 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.”

USDT has been a dominant force in the global stablecoin market, boasting a market cap of over $138 billion. Its widespread adoption in payments and cryptocurrency markets has helped it maintain a leading position over competing stablecoins. According to a recent report by Tether, the number of on-chain wallets holding USDT exceeded 109 million at the beginning of Q4 2024, while over 400 million wallets have received USDT transactions historically.

The Middle East and North Africa (MENA) region has increasingly emerged as a vital market for Tether. Earlier this year, in May, Tether partnered with RAK Digital Assets Oasis, a web3-focused platform, to promote Bitcoin and stablecoin adoption in Ras Al Khaimah, the UAE’s sixth-largest city. By August, Tether announced its plans to introduce a dirham-pegged stablecoin, signaling its intention to deepen its footprint in the region.

The FSRA’s decision to approve USDT as an accepted virtual asset not only reflects the growing recognition of stablecoins in global finance but also underscores Abu Dhabi’s ambition to position itself as a leader in the regulated digital asset space. This approval is expected to facilitate further innovation and collaboration, paving the way for increased adoption of virtual assets across the Middle East.