Tether’s USDT Joins Ripple’s RLUSD as Approved Stablecoin in Abu Dhabi Highlighting UAE’s Multi-Stablecoin Strategy

Tether’s USDT Gains Official Regulatory Status Across Multiple Blockchains In Abu Dhabi

Tether has achieved formal recognition for its USDT stablecoin within Abu Dhabi Global Market (ADGM), granting the token an official regulatory footing in one of the Middle East’s most influential financial hubs.

The Financial Services Regulatory Authority (FSRA) now classifies USDT as an “Accepted Fiat-Referenced Token” (AFRT), allowing licensed firms to conduct regulated activities with the stablecoin across a wide array of blockchain networks.

How ADGM Frames USDT As A Recognised Currency

Under ADGM’s Financial Services and Markets Regulations (FSMR) 2015, USDT is now treated as a fully recognised currency for virtual asset service providers operating in the free zone.

This status enables firms to use USDT for trading, custody, settlement, and other regulated financial operations.

Importantly, the recognition extends across multiple blockchains, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON, alongside previously approved networks such as Ethereum, Solana, and Avalanche.

The multi-chain approval reflects ADGM’s intent to support interoperability rather than confining stablecoin use to a single network.

How Firms Can Benefit From USDT Recognition

With the AFRT designation, licensed entities within ADGM gain immediate operational clarity.

Companies can now integrate USDT into settlement processes, treasury operations, and cross-border payments without regulatory ambiguity.

The move also strengthens liquidity options and provides a consistent legal framework, fostering institutional confidence for firms engaging in both regional and international markets.

Paolo Ardoino, Tether CEO, said,

“The UAE continues to set the global standard for digital asset regulation, and Tether is proud to contribute to this leadership. This milestone highlights Tether’s dedication to advancing financial inclusion and innovation on a global scale. Introducing USD₮ within ADGM’s regulated digital asset framework reinforces the role of stablecoins as essential components of today’s financial landscape.”

ADGM’s Multi-Stablecoin Approach And UAE Strategy

Tether’s approval follows Ripple’s RLUSD, which recently received similar recognition as an accepted fiat-referenced token in ADGM.

#Ripple’s U.S. dollar-backed stablecoin, Ripple USD ( $RLUSD ), has officially been approved by Abu Dhabi’s Financial Services Regulatory Authority (FSRA) as an Accepted Fiat-Referenced Token.

The approval allows its use within the Abu Dhabi Global Market (ADGM), the UAE… pic.twitter.com/9oTpPK8cfT
— TheCryptoBasic (@thecryptobasic) November 27, 2025
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Together, these decisions indicate the UAE’s strategy to foster a multi-stablecoin environment, offering both international and regional financial firms a range of compliant digital settlement options.

The broader UAE approach emphasises transparency and operational stability over speculative activity.

By codifying the status of USDT and other tokens, ADGM reduces ambiguity for firms seeking to deploy stablecoins in institutional workflows, trading desks, or on-chain settlements.

A separate initiative is also exploring a dirham-pegged stablecoin, which, if approved, would provide local institutions with a domestic on-chain settlement asset alongside USD-backed options.

Tether’s Footprint Expands In The Middle East

The recognition solidifies Tether’s position in the region and supports the UAE’s goal of becoming a leading global hub for regulated digital assets.

With a market capitalisation near $186.2 billion, USDT remains the largest stablecoin globally, and the approval allows Tether to extend its services to licensed institutions with greater regulatory certainty.

The move also strengthens network interoperability, enabling USDT to operate across a diverse set of blockchains while maintaining FSRA-compliant safeguards.

By integrating USDT under ADGM’s regulatory framework, Abu Dhabi reinforces its role as a destination for compliant crypto finance and a bridge for global capital to interact with blockchain-based settlement systems.

How Institutions Are Expected To Use USDT In ADGM

Licensed firms can now incorporate USDT into trading desks, custody services, payment solutions, and settlement systems under a clear supervisory framework.

The AFRT classification allows financial institutions to adopt stablecoins in regulated activities without relying on indirect arrangements, paving the way for new service offerings and on-chain settlement pilots.

With Tether and Ripple now recognised, and a potential dirham stablecoin in development, Abu Dhabi is building a comprehensive framework for multi-currency stablecoin operations.

This positions the city as a hub where regulated stablecoins can support international settlement, treasury management, and cross-border flows with legal clarity and operational reliability.