Tether USDT Gains Virtual Asset Status in Abu Dhabi Global Market

by

As a seasoned analyst with years of experience navigating the complex landscape of digital finance, I find this development between Tether USDT and the Abu Dhabi Global Market (ADGM) to be a significant stride towards the mainstream adoption of stablecoins.

In simple terms, the digital currency known as Tether’s USDT stablecoin has been approved by the Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM) as an Accepted Virtual Asset (AVA). This means that licensed financial institutions within ADGM can now provide services related to USDT. This step marks a significant milestone, setting USDT up for broader adoption within the UAE’s rapidly expanding digital finance landscape.

Tether’s USDT Approved as Accepted Virtual Asset in Abu Dhabi Global Market

Based on a recent article, the ADGM (Abu Dhabi Global Market) has officially bestowed upon Tether’s USDT (United States Dollar Tether) the designation of an Approved Virtual Asset. This endorsement signifies a significant milestone for stablecoins as they continue to gain traction within regulated financial sectors. Given that Tether USDT holds a market capitalization over $138 billion, this approval underscores its influential role in the digital assets industry.

In Abu Dhabi Global Market (ADGM), accredited financial service entities have been given the green light to provide services pertaining to Tether USDT (a type of digital coin). These services span across trading, safekeeping, and various other financial activities. This decision is aimed at stimulating the expansion of digital assets within the United Arab Emirates.

Following the development, Paolo Ardoino, Tether CEO commented,

The innovative way the UAE manages virtual asset regulation is setting a high standard across the globe, and it’s great that USDT can contribute significantly to regional economic growth and digital advancement. This approval underscores Tether’s commitment to fostering connections between conventional and decentralized economies, all while maintaining security, trust, and efficiency for users worldwide.

Integration Into The UAE Financial Ecosystem

Tether USDT’s recognition mirrors the UAE’s wider ambition to be a top global center for digital finance. The UAE has poured significant resources into blockchain technology and virtual asset governance. As recent as last month, Ripple expressed intentions to introduce a Dirham-tied stablecoin in the UAE, aligning with the country’s forward-thinking regulations on digital assets.

Adding Tether USDT to the ADGM (Abu Dhabi Global Market) framework expands the possibilities for financial service providers in the UAE to incorporate stablecoins into their business operations. Stablecoins serve as a connection between established financial systems and the burgeoning digital economy, which is vital for the future development of digital assets in this region.

Furthermore, by Q4 2024, USDT has reached a significant achievement with approximately 109 million unique wallets using the stablecoin. This high level of use indicates a rising interest in stablecoins across various international markets. Additionally, there’s been a 71% increase over the past year in the number of wallets holding more than a penny’s worth of USDT.

Read More

2024-12-10 18:56