The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has officially approved Tether’s USDT as an Accepted Virtual Asset. This landmark decision marks a significant step in integrating stablecoins into the UAE’s regulated financial ecosystem.
USDT Recognized Across Multiple Blockchains
According to Tether’s recent announcement, the approval covers USDT on the Ethereum, Solana, and Avalanche blockchains. This enables licensed entities within the ADGM to incorporate USDT into their virtual asset services.
Key highlights:
- Support for a Regulated Digital Economy:
This move aligns with the UAE’s mission to establish itself as a global hub for blockchain and cryptocurrency innovation. - Regulatory Safeguards in Place:
Licensed entities must adhere to stringent regulatory conditions designed to ensure financial stability and compliance when utilizing USDT in their services.
Tether’s Role in the UAE’s Financial Transformation
Tether’s CEO, Paolo Ardoino, emphasized the significance of this approval:
“By bringing USDT into ADGM’s regulated framework, we’re showcasing the transformative role of stablecoins in modern finance. This development opens new opportunities for collaboration and economic growth across the Middle East.”
Ardoino also commended the UAE’s proactive approach to virtual asset regulation, describing it as a global benchmark for fostering digital innovation.
Tether Completes $45M Oil Transaction in the Middle East
In a notable achievement, Tether recently facilitated its first USDT-backed crude oil transaction, valued at $45 million.
Key details:
- The transaction involved the transport of 670,000 barrels of crude oil between a publicly traded oil company and a commodity trader.
- It was executed through Tether’s Trade Finance division, which launched in 2024 to disrupt the $10 trillion global trade finance market.
- The division operates independently of USDT’s stablecoin reserves, leveraging Tether’s profitability to modernize trade financing.
A New Era for Trade Finance
Tether’s Trade Finance division aims to revolutionize commodity trading by providing alternative financing solutions. This initiative is particularly beneficial for businesses reliant on traditional banking systems.
Future plans include expanding its services to encompass additional commodities and industries, further solidifying Tether’s role as a driver of economic modernization.
Conclusion
The integration of USDT into ADGM’s regulated framework is a testament to the UAE’s commitment to fostering a forward-thinking, blockchain-driven economy. Tether’s expanding role in global trade and finance highlights the growing importance of stablecoins as vital tools for economic progress.
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