USDT Gains Formal Recognition Under ADGM Framework
- USDT gains ADGM approval, enabling supervised multi-chain use for regulated firms in the UAE.
- ADGM widens stablecoin coverage as RLUSD, local projects, and major exchanges progress.
- AFRT framework boosts institutional confidence as the UAE builds a supervised digital asset hub.
Abu Dhabi Global Market (ADGM) approved USDT as an Accepted Fiat-Referenced Token (AFRT), giving Tether formal recognition across multiple blockchains inside the financial free zone. The move followed direct engagement between Tether and the Financial Services Regulatory Authority to validate compliance measures. ADGM advanced this step to expand supervised stablecoin use as regional regulators evaluate multi-chain settlement tools.
ADGM Broadens Stablecoin Access
ADGM’s decision authorizes licensed firms to support regulated activities involving USDT on Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON. This step expands earlier approvals for Ethereum, Solana, and Avalanche. The broader coverage introduces a multi-chain base for custody, settlement, and trading functions.
This update arrives during intensified regional sector activity. Earlier in the month, ADGM recognized Ripple’s RLUSD under the same AFRT category. The dual recognitions show regulators shaping a supervised environment that accommodates several dollar-linked tokens.
The expanded approach also follows Tether’s effort to show operational resilience and transparency. The approvals help institutions integrate stablecoins into structured workflows under FSRA oversight. This creates more room for regulated entities to align stablecoin activity with internal controls.
UAE Developments and Context for the Approval
The decision aligns with the UAE’s broader move to support digital asset infrastructure. ADGM continues to attract exchanges and custodians, offering a rules-based system for firms requiring defined supervision.
This context gained additional weight on the same day when Binance announced full authorization to operate the exchange under ADGM oversight. However, the growing sector includes more than international issuers.
A consortium involving ADQ, International Holding Company, and First Abu Dhabi Bank is developing a dirham-pegged stablecoin, pending UAE Central Bank clearance. This project aims to create a domestic settlement token that works in parallel with dollar-denominated alternatives.
These developments give institutions several choices as regulated settlement tools expand. Additionally, they show the ongoing work by UAE entities to integrate digital tokens into treasury and payment functions.
Related: Ripple’s RLUSD Gains ADGM Recognition for use within Abu Dhabi
Institutional Use Cases
USDT’s updated status gives institutions clearer routes to support cross-border transfers and digital settlement under supervision. The FSRA framework outlines how regulated entities may hold and move fiat-referenced tokens, offering a defined regulatory perimeter for operational use.
Paolo Ardoino, Tether’s CEO, said the UAE continues to set a strong regulatory benchmark. He added that multi-chain recognition creates new opportunities for collaboration across the Middle East. His remarks also emphasized the role of AFRT classification in supporting broader access for institutions operating under ADGM rules.
The approvals also strengthen interoperability between platforms that connect decentralized applications to supervised infrastructure. Each newly recognized chain adds technical optionality for firms designing custody and settlement solutions. This creates continuity with earlier approvals while introducing wider coverage for institutional users.
As more networks join the AFRT list, regulated entities gain the flexibility to integrate tokens across different technical environments. This structure supports varied settlement flows while remaining inside the FSRA framework.
Meanwhile, ADGM’s recognition of USDT consolidates its position in a jurisdiction that formalizes multi-chain stablecoin activity. The decision expands coverage across major networks and aligns with similar approvals for RLUSD and new regional initiatives. Together, these developments create a clearer foundation for supervised stablecoin use as institutions prepare broader digital settlement strategies.
