Tether’s USDT Achieves Regulatory Status as a Fiat-Referenced Token in Abu Dhabi Global Market

Tether’s USDT stablecoin has received official recognition as a fiat-referenced token in various blockchains within the Abu Dhabi Global Market (ADGM). This development represents a significant move in the United Arab Emirates' (UAE) efforts to establish itself as a leading global hub for regulated digital assets.

Key Takeaways:

The Abu Dhabi Global Market now permits the use of USDT across multiple major blockchains under regulated conditions.
Tether states that this milestone emphasizes the increasing importance of stablecoins in contemporary finance.
This update is concurrent with Binance gaining full authorization from ADGM, which enhances Abu Dhabi's ambitions in the cryptocurrency domain.

On Monday, Tether announced that the ADGM now allows licensed institutions operating in its financial free zone to engage in regulated activities using USDT on various blockchains including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON.

This newly announced recognition builds on previous approvals for USDT on Ethereum, Solana, and Avalanche, thereby broadening the stablecoin’s geographical and technical capabilities across the region.

Tether’s USDT Achieves Regulatory Status as a Fiat-Referenced Token in Abu Dhabi Global Market

Validation of Stablecoins' Financial Significance

Tether’s CEO, Paolo Ardoino, highlighted the importance of this recognition, stating that it reaffirms stablecoins' vital role within the modern financial landscape.

“By integrating USDT into the regulated digital asset framework of ADGM, we further establish the importance of stablecoins,” he remarked. He also noted that recognizing USDT across multiple chains strengthens Abu Dhabi’s position as a center for compliant digital finance.

The ADGM functions as a specialized economic zone and international financial hub, complete with its own legal and regulatory system. Its Financial Services Regulatory Authority (FSRA) is responsible for licensing and overseeing firms in this jurisdiction.

With the latest approvals, ADGM-licensed entities can now facilitate USDT transactions across nearly all major blockchains where the token is in circulation. This advancement paves the way for a more extensive multichain foundation for activities like settlement, trading, and decentralized applications.

This announcement coincides with Abu Dhabi's concerted efforts to draw in global digital-asset firms.

On the same day, Binance reported that it received full authorization to run its main platform, Binance.com, under ADGM’s oversight, a significant achievement following years of regulatory challenges.

Binance plans to operate through three separate legal entities in the ADGM, mirroring a traditional financial market structure that allows for regulated trading, custody, settlement, and off-exchange services. Co-CEO Richard Teng stated that this approval showcases Binance’s commitment to ADGM’s high regulatory standards.

Pending final operational procedures, Binance.com is expected to initiate regulated activities under the ADGM framework starting January 5, 2026, aligning with Abu Dhabi's strategy of pairing strict regulatory oversight with a welcoming approach to digital asset innovation.

Tether Responds to Concerns Amid Market Volatility

Recently, Tether has come under scrutiny after Arthur Hayes, the founder of BitMEX, raised alarms about potential insolvency risks if the company’s Bitcoin and gold holdings were to drop by 30%.

However, James Butterfill from CoinShares dismissed these concerns, indicating that Tether possesses over $181 billion in reserves against $174.45 billion in liabilities, resulting in a surplus of about $6.78 billion.

These comments emerge during a period of heightened market volatility linked to fluctuations in Japanese bonds and weak labor data from the U.S.

Tether’s CEO, Paolo Ardoino, countered Hayes's claims by revealing that Tether Group’s total assets amount to approximately $215 billion, bolstered by around $7 billion in excess equity and an additional $23 billion in retained earnings.

He pointed out that Bitcoin and gold constitute only 12.6% of their reserves, with over 70% invested in short-term U.S. Treasuries. Ardoino accused critics of misinterpreting the company's attestation data, highlighting Tether’s impressive monthly interest income of about $500 million.