Abu Dhabi Grants Key Regulatory Status to Tether’s USDt

Tether’s USDt gains regulatory approval in Abu Dhabi, while UAE Islamic bank Ruya launches in-app Bitcoin trading, boosting crypto growth.

Tether’s USDt, the largest stablecoin by market cap, has achieved a regulatory milestone in Abu Dhabi. The Abu Dhabi Global Market (ADGM) has officially recognized USDt as an “accepted fiat-referenced token.” This designation allows licensed firms in the ADGM to offer trading, custody, and other services involving USDt.

The move marks a significant step for stablecoins in the UAE’s financial landscape.

Regulatory Milestone for Stablecoins in Abu Dhabi

The ADGM’s recognition of USDt is an important development for the digital asset space in the UAE. The ADGM has long been a hub for crypto companies seeking clear regulations and institutional access.

By granting regulatory approval to USDt, the region continues to position itself as a leader in digital asset services.

Tether CEO Paolo Ardoino expressed that this recognition “reinforces the role of stablecoins as essential components of today’s financial landscape.” He also emphasized the growing use of stablecoins in remittances, cross-border settlements, and digital asset markets.

The approval of USDt marks a significant step forward in integrating stablecoins into regulated financial services in Abu Dhabi.

This regulatory status allows licensed companies in ADGM to offer a wider range of services involving USDt, including custody and institutional settlements. The recognition also expands the token’s usability, particularly in cross-border payments and institutional-grade custody services.

UAE’s Growing Stablecoin and Digital Asset Market

The UAE’s crypto ecosystem is rapidly expanding, with several notable developments. Recently, UAE Islamic bank Ruya partnered with Fuze to launch in-app Bitcoin trading.

This makes Ruya the first Sharia-compliant bank in the country to offer direct BTC purchases. The move is significant as it opens the door for more Islamic financial institutions to consider crypto services, blending traditional banking with the emerging digital asset market.

In addition to this, Chainalysis data shows that the UAE recorded over $30 billion in crypto inflows between July 2023 and June 2024. This represents a 42% year-on-year increase, highlighting the growing interest in cryptocurrency in the region.

The adoption of digital assets is becoming increasingly mainstream, supported by favorable regulations and institutional backing.

With the introduction of in-app Bitcoin trading by Ruya, the UAE is positioning itself as a key hub for both Islamic finance and cryptocurrency. This innovation is expected to spark further interest in crypto offerings that comply with Sharia principles, fostering wider adoption within the region.

Related Reading: Ripple’s Stablecoin RLUSD Cleared for Abu Dhabi Financial Markets

Stablecoin Market Growth and Abu Dhabi’s Role

The global stablecoin market has seen significant growth in recent years, with a market valuation exceeding $300 billion. The UAE’s approach to digital assets, especially stablecoins, is contributing to this expansion.

By providing a regulatory framework that supports stablecoin use, Abu Dhabi is positioning itself as a key player in the market. As more stablecoins gain regulatory approval in the UAE, the region’s influence on the digital asset market is expected to grow.

The ADGM’s role in supporting crypto-focused businesses will likely continue to attract more institutions to the region. The recognition of USDt is just one example of how Abu Dhabi is shaping the future of stablecoins and digital assets.

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