Tether Gains ADGM Approval for USDT Across Nine Blockchains

TLDR

• Tether’s USDT approved for use on nine additional blockchains.
• Approval enhances Tether’s regulatory presence in the UAE.
• USDT can now support various financial services in ADGM.

Tether Expands USDT Use with ADGM Approval

Tether has received approval from the Abu Dhabi Global Market (ADGM) to expand the use of USDT across nine additional blockchains. This approval designates USDT as an Accepted Fiat-Referenced Token (AFRT), allowing regulated activities involving USDT on these networks. The move enhances Tether’s presence and facilitates regulated use of USDT within the UAE’s financial ecosystem.

The approval follows long-term discussions with the Financial Services Regulatory Authority (FSRA) to ensure transparency and regulatory compliance. This development is a significant step toward integrating USDT into a broader range of financial services in Abu Dhabi. The recognized blockchains now include Aptos, Celo, Cosmos, Kaia, NEAR, Polkadot, Tezos, TON, and TRON, in addition to the previously approved Ethereum, Solana, and Avalanche.

Role of Financial Services Regulatory Authority

The Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) oversees the regulation of virtual assets within ADGM. By adding USDT to its stablecoin/AFRT register alongside Circle’s USDC and Ripple’s RLUSD, FSRA aims to position ADGM as a forward-thinking hub for digital assets.

For licensed entities operating within ADGM, this new status means USDT can be utilized for regulated services such as settlement, payments, asset management, and trading. This positions USDT as a key player within Abu Dhabi’s strategic development as a regulated digital-asset hub.

Tether emphasizes that the approval follows “long-term engagement” with FSRA to demonstrate transparency, resilience, and regulatory compliance.

Tether CEO Paolo Ardoino

Impact on Blockchains and DeFi Protocols

The impact of ADGM’s approval allows USDT to be used across a variety of Layer 1 networks. This includes not only direct usage of USDT but also investment in DeFi protocols that integrate USDT as collateral or a liquidity asset. The affected networks are Aptos, Celo, Cosmos, Kaia, NEAR, Polkadot, Tezos, TON, and TRON, alongside Ethereum, Solana, and Avalanche which were previously approved.

These approvals also extend to various DeFi protocols on these blockchains, where USDT is often utilized for trading, lending, and other financial products within decentralized exchanges and money markets. This sets the stage for compliant and secure flows of USDT within the UAE’s financial system.

Regulatory Milestone for Tether

This approval marks a significant milestone for Tether as the largest USD stablecoin by market cap. Paolo Ardoino, the CEO of Tether, highlighted that this is a validation of USDT’s role in global settlement and financial inclusion. Such initiatives align with Abu Dhabi’s strategy to create a regulated environment conducive to digital assets.

No explicit new funding or dollar-denominated capital allocations were disclosed in this announcement. However, the approval provides compliant avenues for institutional flows of USDT within Abu Dhabi, potentially supporting wider adoption and integration.

Future Prospects in the UAE

The recent ADGM approval is part of broader efforts by Abu Dhabi and Dubai to become key players in the global stablecoin and digital-assets markets. Both regions are implementing frameworks that attract stablecoin and crypto firms, fostering a regulated environment for banks, fintechs, and exchanges to operate under clear licensing regimes.

Within this context, Tether also plans to issue a UAE dirham-pegged stablecoin and has partnered with Reelly Tech. This partnership aims to integrate USDT into UAE real-estate transactions, signaling a greater emphasis on real-world asset adoption and payment systems within the region.

For further details on Tether’s regulatory expansion, refer to Tether (USDT) Receives Approval in Abu Dhabi from ADGM and USDT Stablecoin Gains Multi-Chain Approval from ADGM.