Abu Dhabi Global Market (ADGM) has expanded the list of approved tokens operating within its regulated framework, now extending the reach of Tether’s USDT across multiple new blockchain networks.
Key Developments
Abu Dhabi has broadened USDT’s regulatory approval to encompass nine additional blockchains. This move follows similar recognition for Ripple’s stablecoin and the full licensing of Binance. Tether views this decision as a testament to the UAE’s leadership in regulatory development. ADGM is actively positioning itself as a global hub for supervised cryptocurrency activities.
ADGM has classified USDT as an Accepted Fiat-Referenced Token, a designation that permits regulated firms within the financial zone to deploy the asset in supervised activities, including settlement and asset servicing. This classification is more significant than a generic listing, enabling broader operational use.
The expansion allows USDT to be used on networks such as Aptos, Celo, Cosmos, Near, Polkadot, TRON, Tezos, Kaia, and TON. This significantly broadens the previous permissions, which were primarily limited to Ethereum, Solana, and Avalanche.
The Broader Context: Competition for Institutional Stablecoin Adoption
This development occurs shortly after Ripple’s RLUSD received similar recognition within ADGM. This indicates that UAE regulators are actively integrating competing stablecoins, rather than showing preference for a single issuer. Crypto exchanges are also being integrated into this regulatory structure, with Binance being the first major platform to secure full authorization for trading, custody, and clearing under the same regime.
These collective actions suggest a strategic approach by ADGM to establish itself not merely as a testing ground, but as an operational center where global entities are expected to engage with oversight and compliance frameworks.
Tether's Engagement with UAE's Regulatory Framework
Tether’s chief executive, Paolo Ardoino, highlighted the UAE as one of the few jurisdictions providing a functional model for digital asset regulation. He also framed the ADGM's decision as an acknowledgment of USDT's significance in international settlement markets and its role in facilitating financial inclusion, aligning with Abu Dhabi’s broader objectives.
From Tether's perspective, this regulatory upgrade within the UAE enhances network interoperability, enabling USDT to transfer between decentralized applications and institutional systems more seamlessly, mitigating fragmentation issues.
ADGM's Evolving Strategy
The increasing scope of regulated stablecoins and exchange platforms signals Abu Dhabi's intention to foster infrastructure for the digital asset ecosystem, rather than focusing on speculative activities. By bringing issuers, liquidity providers, and trading venues into supervised models, the emirate aims to establish itself as a credible destination for crypto finance and a potential conduit between global capital markets and blockchain-based settlement systems.
In this context, Tether’s expanded network presence within ADGM represents more than just increased product availability; it signifies another component of the infrastructure that the UAE is actively developing.