Tether’s USDT stablecoin has been approved as an accepted virtual asset (AVA) by the Abu Dhabi Global Market (ADGM), according to a December 10 statement.
The landmark decision, granted by the Financial Services Regulatory Authority (FSRA), allows licensed entities within the jurisdiction to offer services involving USDT under the ADGM regulatory framework.
The approval marks a significant milestone for Tether, enabling the seamless integration of USDT into ADGM’s approved financial services ecosystem. Tether CEO Paolo Ardoino emphasized that this achievement highlights the growing importance of stablecoins in the modern financial world and strengthens the company’s role in bridging traditional and decentralized economies.
Ardoino added that the UAE’s progressive regulatory path sets a global benchmark, positioning USDT as a key tool in advancing the region’s digital transformation and economic growth.
In August, Tether announced plans to launch a Dirham-pegged stablecoin, underscoring its commitment to supporting the UAE’s vision as a global economic center.
Tether’s USDT is the largest stablecoin by market capitalization, controlling approximately 70% of the market with a supply of over $138 billion.
Token Disclosure Standards
Meanwhile, the ADGM is also working with Polygon Labs to establish a global token unveiling process for the web3 ecosystem.
This initiative aims to improve the Distributed Ledger Technology (DLT) Foundations Regulations, introduced in 2023, to streamline token issuance and support decentralized autonomous organizations (DAOs).
Hamad Al Mazrouei, CEO of the ADGM Registration Authority, stated that the token disclosure process is designed to promote transparency and strengthen trust in blockchain technologies.
He added that the partnership with Polygon Labs aligns with ADGM’s mission to strengthen Abu Dhabi’s status as a leading blockchain and Web3 innovation center.
Similarly, Sandeep Nailwal, co-founder of Polygon stated:
“We are not only setting new standards for transparency and disclosure, but also creating a foundation of trust that allows users, developers and institutions around the world to confidently interact with blockchain systems.”