Tether’s USDT stablecoin has recently received approval as an Accepted Virtual Asset (AVA) by the Abu Dhabi Global Market (ADGM), as announced in a statement on Dec. 10. This groundbreaking decision, issued by the Financial Services Regulatory Authority (FSRA), permits licensed entities within the jurisdiction to offer services involving USDT under ADGM’s regulatory framework.
The significance of this approval cannot be understated, as it paves the way for the seamless integration of USDT into ADGM’s approved financial services ecosystem. Tether CEO Paolo Ardoino has highlighted the growing importance of stablecoins in modern finance and the company’s pivotal role in bridging traditional and decentralized economies. He also emphasized that the UAE’s progressive regulatory stance sets a global benchmark, positioning USDT as a key tool in advancing the region’s digital transformation and economic growth.
In a move that further solidifies Tether’s commitment to the UAE market, the company announced plans to launch a Dirham-pegged stablecoin back in August. With USDT currently reigning as the largest stablecoin by market cap, controlling approximately 70% of the market with a supply exceeding $138 billion, this expansion into the UAE market is poised to have a significant impact.
On a separate note, the ADGM has joined forces with Polygon Labs to establish a global token disclosure process for the web3 ecosystem. This collaborative effort aims to enhance the Distributed Ledger Technology (DLT) Foundations Regulations, which were introduced in 2023, in order to streamline token issuance and support Decentralized Autonomous Organizations (DAOs). Hamad Al Mazrouei, CEO of the ADGM Registration Authority, expressed that the token disclosure process is geared towards promoting transparency and bolstering trust in blockchain technologies. This partnership with Polygon Labs aligns with ADGM’s mission to cement Abu Dhabi’s reputation as a leading blockchain and web3 innovation hub.
Sandeep Nailwal, co-founder of Polygon, echoed this sentiment, stating, “We’re not only establishing new benchmarks for transparency and disclosure but also creating a foundation for trust that allows users, developers, and institutions worldwide to engage with blockchain systems confidently.”
In conclusion, Tether’s approval as an AVA by the ADGM and the collaborative efforts between ADGM and Polygon Labs signify a significant step forward in the realm of blockchain technology and digital asset regulation. These developments not only highlight the growing importance of stablecoins in the global financial landscape but also underscore the UAE’s commitment to fostering innovation and growth in the digital economy.