Tether’s USDT Stablecoin Now Licensed In Abu Dhabi

Tether Holdings Ltd, the company behind the largest stablecoin, USDT, said it has received a digital asset license to trade in Abu Dhabi.

The license positions Tether as a pioneer in stablecoin acceptance in the United Arab Emirates. It also emphasizes the nation’s proactive approach to integrating traditional and digital finance.

The Tether Accepted Virtual Asset License

According to the announcement, the Abu Dhabi Global Markets (ADGM) Financial Services Regulatory Authority (FSRA) approved USDT as an Acceptable Virtual Asset (AVA).

This approval permits licensed FSRA financial providers to offer pre-approved services related to Tether’s USDT stablecoin.

The ADGM’s approval applies to USDT issued on numerous blockchains, including Ethereum (ETH), Solana (SOL), and Avalanche (AVAX).

It aligns with the UAE’s ambition to become a global hub for digital finance. USDT’s inclusion as an AVA strengthens its position as the largest stablecoin in the sector, with a market capitalization exceeding $138 billion.

– Advertisement –

Tether’s CEO Paolo Ardoino stated that the approval opens new doors for collaboration and growth across the Middle East. He believes USDT can play a key role in driving the region’s economic progress and digital transformation.

The CEO added that the UAE’s forward-thinking approach to virtual asset regulation has established a global standard.

Notably, crypto adoption in the UAE has surged since 2022. In September 2024, Standard Chartered formally launched its digital asset custody service in the UAE.

Standard Chartered stated at the time that the country’s enabling legal framework was ideal for advancing crypto.

Tether and Broad Market Expansion

The ADGM’s approval follows Tether’s broader market expansion initiatives.

Tether embarked on a minting spree in November, injecting over $5 billion into the market in 72 hours. On November 18, Tether minted another $1 billion USDT on Ethereum.

This transaction accompanied a previous $1 billion USDT transfer to Tether’s treasury on the Tron network, done a few days earlier.

The stablecoin issuer said the transactions were part of a series of actions to provide enough reserves for future market needs.

Tether also revealed a partnership with Quantoz Payments to support the creation of EURQ and USDQ stablecoins. The firm said the EURQ and USDQ stablecoins will provide more efficient and less expensive means of payment than the traditional systems.

Fighting Regulatory Strain, Reserve FUD

Surprisingly, Tether is battling regulatory challenges in Europe. As a result, the stablecoin issuer recently shut down its Euro Tether (EURT) operations.

The company is yet to comply with the European Union’s new digital asset regulations, Markets in Crypto Assets (MiCA).

European regulators drafted the MiCA regulations to reduce the volatility and risks of digital currencies.

The EURT withdrawal has raised concerns about Tether’s ability to operate under tight regulatory regimes. Market analysts speculate that Tether could face a similar action in the US if the country adopts a regulatory direction comparable to Europe’s.

Moreover, Tether continues to battle Fear, Uncertainty, and Doubt (FUD), especially concerning its Proof of Reserves.

However, the firm has reiterated that the US Treasury and other liquid assets fully back its USDT stablecoin. In October, the stablecoin giant released its attestation report, revealing a profitable third quarter showing $7.7 billion in Year-to-Date (YTD) earnings.