Tether USDT receives regulatory approval in Abu Dhabi, UAE aims to become a global compliance hub

Abu Dhabi Global Market (ADGM) has recently officially recognized Tether’s USDT as an “Accepted Fiat-Referenced Token (Accepted Fiat-Referenced Token, AFRT),” allowing local institutions to legally operate USDT custody, trading, and settlement services. This not only expands the use cases of USDT but also strengthens the UAE’s strategy to become a global compliant crypto hub.

USDT Gains “Fiat-Level” Regulatory Approval in Abu Dhabi, Opens Access on Nine Major Blockchains

According to Tether’s announcement, Abu Dhabi’s regulator FSRA has officially included USDT in the AFRT framework, enabling licensed institutions to legally provide financial services related to stablecoins, such as trading, custody, and settlement. The approval covers multiple blockchains including Aptos, Near, and TRON, aiming to establish a multi-chain, open, and legally protected usage environment.

Previously, ADGM only recognized USDT issued on Ethereum, Solana, and Avalanche. This significant expansion paves the way for institutional-grade stablecoins to meet multi-chain demand, allowing financial institutions to handle cross-chain payments, trading, and asset circulation more flexibly.

UAE Stablecoin Strategy Upgraded: From USDT to Dirham Stablecoin

USDT is not the only stablecoin being promoted in Abu Dhabi. Local regulators have recently approved Ripple’s USD stablecoin RLUSD, allowing it to operate within the financial center’s regulated framework.

Meanwhile, Abu Dhabi’s sovereign wealth fund (ADQ), International Holding Company (IHC), and First Abu Dhabi Bank are forming a consortium to launch a dirham (AED) stablecoin, pending central bank approval.

This move means the UAE is building a complete and diversified stablecoin ecosystem, from USDT to local fiat tokenization, gradually integrating stablecoins into the core infrastructure for cross-border settlement, trade finance, and digital asset markets.

(UAE sovereign wealth funds are preparing an Emirati dirham stablecoin, reportedly to be issued by Abu Dhabi banks)

Paolo Ardoino: Stablecoins Have Become Key Infrastructure in Modern Finance

Tether CEO Paolo Ardoino stated that ADGM’s recognition further reaffirms the core role of stablecoins in global finance:

Including USDT in ADGM’s regulated framework not only strengthens its function as financial infrastructure, but also brings more innovation and collaboration opportunities to the Middle Eastern market.

Tether emphasized that this recognition demonstrates its transparency and compliance framework and makes USDT one of the first international stablecoins to receive multi-chain regulatory approval, helping to enhance global financial liquidity.

Following Binance’s Footsteps, Abu Dhabi Becomes the Next Crypto Compliance Hub

Yesterday, crypto exchange Binance also announced it has obtained an operating license from ADGM. Binance will legally operate under three corporate entities—as an exchange, clearinghouse, and broker—fully adopting the same financial architecture as traditional markets, including custody, settlement, and OTC services. It is expected to officially launch operations on January 5, 2026.

Binance Co-CEO Richard Teng described ADGM’s high regulatory standards as reflecting the company’s commitment to compliance, governance, risk management, and consumer protection.

(Binance becomes the first crypto exchange to obtain a global license under Abu Dhabi’s regulatory framework)

These developments show that Abu Dhabi is building a global crypto financial center on par with New York or Singapore by improving regulations, attracting leading institutions, and actively developing stablecoins.

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