Abu Dhabi Global Market Allows USDT for Virtual Asset Services

The Financial Services Regulatory Authority (FSRA) has approved Tether’s USDT as an Accepted Virtual Asset in the Abu Dhabi Global Market (ADGM).

According to a recent statement from Tether, the recognition by ADGM covers USDT on Ethereum, Solana, and Avalanche blockchains, enabling licensed entities to integrate the stablecoin into their services.

Tether’s USD₮ Recognized as Accepted Virtual Asset in ADGM, UAE!https://t.co/DVxf8zSHAA

— Paolo Ardoino 🤖🍐 (@paoloardoino) December 10, 2024

USDT Gains Recognition in UAE’s Regulated Market

Tether’s announcement highlighted that this recognition aligns with the UAE’s focus on developing a robust and regulated digital asset ecosystem. The UAE has been proactive in positioning itself as a hub for blockchain and crypto innovation.

The approval includes specific regulatory conditions to ensure compliance and safeguard financial stability. Licensed entities must adhere to these requirements when offering services involving USDT across supported blockchain networks.

“By bringing USDT 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,” said Tether CEO Paolo Ardoino.

“The UAE’s forward-thinking approach to virtual asset regulation sets a global benchmark, and we are proud that USDT can play a pivotal role in driving economic progress and digital transformation in the region,” stated Ardoino.

Tether Completes $45M Oil Deal in Middle East

In November, Tether announced the completion of its first USDT-backed crude oil transaction in the Middle East, valued at $45 million. The transaction involved the loading and transport of 670,000 barrels of crude oil between a publicly traded oil company and a commodity trader.

This deal was facilitated through Tether’s Trade Finance division, launched in 2024 to address the $10 trillion global trade finance market. The division operates independently of Tether’s stablecoin reserves, relying instead on the company’s reported high profitability.

Tether’s Trade Finance division aims to modernize trade flows by offering alternative financing solutions for commodity trading businesses, particularly those relying on traditional banking systems. The company has expressed interest in expanding its offerings to other commodities and industries.