Tether (USDT) Gets Official Approval as a Virtual Asset in Abu Dhabi

Abu Dhabi’s ADGM regulatory body has officially greenlit Tether’s USDT as an Approved Virtual Asset (AVA).

As reported by Cointelegraph on the 10th, this move by the ADGM Financial Services Regulatory Authority allows licensed financial service providers within ADGM to integrate USDT into their regulated financial ecosystem and offer related services.

This approval covers USDT issued on several blockchains, including Ethereum, Solana, and Avalanche, aligning with the UAE's ambition to establish itself as a global hub for digital finance.

With a market cap exceeding $138 billion, USDT’s inclusion as an AVA solidifies its dominance in the stablecoin sector. It underscores the growing importance of stablecoins in bridging the gap between traditional finance and digital asset markets.

That said, not everyone is thrilled about this integration. Some regulatory bodies, like the FSOC (Financial Stability Oversight Council), have raised concerns. They argue that the lack of robust risk management frameworks in the stablecoin sector could threaten financial stability.

FSOC also called out the heavy centralization of the stablecoin market, pointing out that a single entity—Tether—accounts for around 70% of the total market value in this space.

This is a big win for Tether and stablecoins in general, but it’s also a reminder that regulation is still a hot topic. The UAE’s progressive stance could set the stage for more countries to follow suit—or it might spark even tougher scrutiny from skeptics. Let’s see how this plays out.

Stay tuned for more updates like this. 🚀