Tether reached another milestone in 2024 as its stablecoin, USDT, was approved as an accepted virtual asset in the Abu Dhabi Global Market (ADGM). This approval allows licensed companies operating under the FSRA to offer services involving USD₮. This development enhances the UAE’s position as a hub for digital financial innovation.
The Abu Dhabi Global Market (ADGM), established in 2015, is a financial hub in Abu Dhabi that attracts international businesses with benefits like tax exemptions, full foreign ownership, and support for fintech and digital currencies.
USD₮, now valued at over $138 billion and used by more than 400 million people worldwide, complements this stability by bridging the gap between traditional money systems and the emerging digital economy.
Tether was created to solve the problem of price fluctuations often seen in cryptocurrencies like Bitcoin or Ethereum. This stability allows users to engage in transactions without worrying about sudden changes in value.
Stablecoins, such as USD₮, are used widely in the cryptocurrency market for various purposes. They enable fast and affordable cross-border payments, provide a safeguard against the price volatility of other cryptocurrencies, and are a critical tool for trading and maintaining liquidity on crypto exchanges.
Additionally, stablecoins are an important component of the decentralized finance (DeFi) ecosystem, offering opportunities in lending, borrowing, and earning returns on digital assets.
Tether’s influence extends globally, as it operates across several blockchain networks like Ethereum, Tron, and Solana. This accessibility makes it a trusted option for individuals and businesses, particularly in regions where traditional banking services are either unavailable or less efficient.
Since 2022, the UAE has seen rapid growth in cryptocurrency use, thanks to its advanced rules for regulating virtual assets. Cities like Abu Dhabi and Dubai have become global centers for crypto and blockchain technology, fostering an environment where digital assets can thrive.
Tether’s CEO, Paolo Ardoino, highlighted the significance of this milestone, explaining that it brings their stablecoin, USD₮, into a regulated system in the Abu Dhabi Global Market. He noted that stablecoins like USD₮ are essential for today’s financial systems.
This approval creates opportunities for collaboration and innovation in the Middle East. Ardoino also praised the UAE’s strong approach to regulating virtual assets and expressed pride in supporting the region’s economic and digital development.
This approval follows Tether’s plan to launch a Dirham-pegged stablecoin on The Open Network (TON). Announced just over a month ago at TON Gateway in Dubai, Tether’s Senior Strategic Partnership Manager, Alessandro Giori, revealed that this move is part of the company’s strategy to expand into the Middle East.
According to Giori, the new AED-pegged stablecoin aims to streamline financial transactions in the region, offering a stable digital currency option that enhances accessibility and reliability in digital finance.
