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Abu Dhabi, UAE, December 9, 2025.
In a significant boost for institutional cryptocurrency adoption in the Middle East, the Abu Dhabi Global Market (ADGM) has expanded its regulatory recognition of Tether's USDT stablecoin, designating it as an Accepted Fiat-Referenced Token (AFRT) across nine major blockchain networks.
The approval, announced by Tether on December 8, allows licensed firms under ADGM's Financial Services Regulatory Authority (FSRA) to conduct regulated activities, such as trading, custody, and settlements, involving USDT on Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON.
This builds on prior approvals for Ethereum, Solana, and Avalanche, effectively covering nearly all primary networks where the world's largest stablecoin operates.
Tether CEO Paolo Ardoino hailed the decision as a testament to collaborative regulatory progress, stating that it reinforces stablecoins' role in modern finance while enhancing interoperability and compliance.
Key Takeaways
- Major Regulatory Milestone: USDT's AFRT status provides a compliant framework for institutions in one of the UAE's premier financial hubs, signaling stronger legitimacy for dollar-pegged stablecoins.
- Multi-Chain Interoperability Boost: The expansion improves liquidity and cross-chain efficiency, enabling seamless use in trading, payments, and DeFi by regulated entities.
- Institutional Adoption Surge: This move is expected to accelerate USDT's integration into remittances, cross-border transactions, and regional financial services, amid growing Middle East crypto interest.
- Broader UAE Crypto Push: Comes alongside recent approvals for Ripple's RLUSD, Circle's USDC operations, and Binance's full licensing in ADGM, underscoring Abu Dhabi's pro-innovation stance.
- Future Implications: Strengthens Tether's regional strategy, including potential AED-pegged stablecoins and partnerships in UAE real estate and beyond.
Details of the Approval
The AFRT designation requires stablecoins to meet strict FSRA criteria on transparency, reserves, and safeguards. Licensed ADGM entities can now integrate USDT more fully into their operations across the newly approved chains.
This multi-chain extension follows months of close collaboration between Tether and FSRA regulators.
Ardoino emphasized that the approval "demonstrates our commitment to resilience, transparency, and regulatory compliance," highlighting how it positions USDT as a reliable settlement asset while adhering to oversight standards.
Background on ADGM and Tether's Collaboration
ADGM, an international financial center in the UAE capital, has emerged as a leading regulator for digital assets, balancing innovation with strict investor protections. It oversees a growing ecosystem of licensed crypto firms.
Tether, issuer of the dominant USDT with over $300 billion in circulation across stablecoins globally, has pursued regulated expansion worldwide.
Initial ADGM recognition cam in 2024 for select chains, paving the way for this broader approval.
Implications for the Crypto Industry and Middle East
The decision enhances institutional confidence in USDT, potentially driving increased usage in high-volume sectors like remittances and real estate transactions in the UAE.
It aligns with Abu Dhabi's ambitions to become a global crypto hub, attracting firms amid clearer rules compared to other jurisdictions.
Recent parallel developments, such as Binance's full ADGM authorization and Circle's licensing, further cement the region's appeal.
Analysts view this as part of a trend toward mainstream stablecoin integration, promoting financial inclusion and efficient cross-border flows.
Conclusion
ADGM's expanded approval for Tether's USDT marks a pivotal advancement in regulated digital finance, solidifying Abu Dhabi's role as a compliant leader in the crypto space.
As stablecoins gain broader institutional backing, this could accelerate mainstream adoption across the Middle East and beyond.
Read Next:
- Stablecoins x Tokenized Finance in 2026: Here's What's Coming
- The Neobank Transition Report
- 2025 Stablecoin Spending Report
FAQs:
1. What is the recent ADGM approval for Tether's USDT?
On December 8, 2025, Abu Dhabi Global Market recognized USDT as an Accepted Fiat-Referenced Token (AFRT), expanding its use to nine additional blockchains for regulated activities by licensed firms.
2. Which blockchains are now approved for USDT in ADGM?
The new approvals include Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON, in addition to the previously approved Ethereum, Solana, and Avalanche.
3. What does Accepted Fiat-Referenced Token (AFRT) mean?
AFRT is a regulatory designation by ADGM's FSRA allowing licensed entities to offer services like trading, custody, and settlements involving the stablecoin under supervised compliance.
4. How does this impact institutional adoption of USDT?
It enables regulated institutions in Abu Dhabi to integrate USDT more seamlessly, enhancing liquidity, interoperability, and its use in cross-border payments and DeFi applications.
5. Why is this approval significant for the Middle East crypto market?
It positions Abu Dhabi as a leading hub for compliant digital finance, following similar recognitions for other stablecoins and exchanges, and supports Tether's regional expansion strategy.
