The Block reported that the USDT stablecoin, the leading currency from Tether, has received official approval under the regulatory framework of the Abu Dhabi Global Market (ADGM).
This approval represents an important step in promoting the use of stable cryptocurrencies in the regulated financial system of the emirate, as it allows licensed entities within ADGM to use currency #USDT in a range of financial activities. This development comes at a time when the Middle East is witnessing a rapid adoption and regulation of digital assets, with the UAE striving to establish itself as an innovative global hub in this field.
Details of the adoption and its effects on the local and global market:
According to the site, the adoption under the umbrella of "Accepted Fiat-Referenced Tokens" within the ADGM framework places USDT in a clear category subject to regulatory requirements related to reserves, transparency, and risk management. This classification opens the door for banks, financial institutions, and licensed financial service companies in Abu Dhabi to offer services related to USDT to their clients, such as trading, transferring, payment, and secure custody, which may lead to increased liquidity of USDT in local markets and deepen its integration into the regional digital economy.
The regional competitive context and the expansion path for #Tether :
The site noted that this step comes within the framework of strong regional competition among financial centers in the Gulf to attract and regulate cryptocurrency companies. Competitors like USDC from Circle have previously obtained similar approvals in Dubai.
The adoption of USDT by ADGM represents a strategic victory for Tether in a vibrant and growing market, reflecting its commitment to operating within legal frameworks, while also enhancing the credibility of #USDT as a financial instrument usable in institutional transactions and international trade financing across the region.
Future expectations and the impact of adoption on market stability:
This adoption may encourage traditional institutions in the region to explore the use of #USDT currency in cross-border payment solutions and financial transfers, reducing costs and increasing speed.
In the long term, it could contribute to the stability of the stablecoin market by linking it to a robust regulatory environment, reassuring users and investors. As Tether continues its pursuit of similar approvals in other jurisdictions around the world, Abu Dhabi sets an example of how to safely and systematically integrate new digital assets into the traditional financial system.
