Tether says the decision reflects how stablecoins are playing a bigger role in modern finance.
Tether’s USDT stablecoin has received official regulatory recognition in the Abu Dhabi Global Market (ADGM), becoming an approved fiat-backed token across a wide range of blockchains. The move marks another milestone in the UAE’s efforts to establish itself as a leading hub for regulated digital assets.
Key Takeaways:
ADGM now allows USDT to be used across multiple major blockchains under a regulated framework.
Tether says the approval highlights the growing role of stablecoins in today’s financial system.
The announcement comes as Binance also gains full authorization in ADGM, further supporting Abu Dhabi’s ambitions in the crypto sector.
Tether’s USDT Gains Wider Regulatory Recognition in Abu Dhabi
On Monday, Tether announced that the Abu Dhabi Global Market (ADGM) now allows licensed institutions in its financial free zone to conduct regulated activities with USDT across multiple blockchains, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON.
This expands on earlier approvals for USDT on Ethereum, Solana, and Avalanche, significantly broadening the stablecoin’s reach and usability across the region.
ADGM Approval Highlights Stablecoins’ Growing Role
Paolo Ardoino, Tether’s CEO, said the recognition underscores the increasing importance of stablecoins in modern finance.
“Introducing USDT within ADGM’s regulated digital asset framework reinforces the role of stablecoins as essential components of today’s financial landscape,” Ardoino said. He added that supporting USDT across multiple chains helps strengthen Abu Dhabi’s position as a hub for compliant digital finance.
ADGM operates as a special economic zone and international financial center, with its own legal, regulatory, and judicial system. Its Financial Services Regulatory Authority (FSRA) oversees licensing and supervision for firms operating in the jurisdiction.
Under the new approval, ADGM-licensed entities can support USDT across nearly all major chains where the token is used, creating a broad multichain foundation for trading, settlement, and decentralized application activity.
Abu Dhabi Attracts Global Crypto Firms
The announcement comes as Abu Dhabi steps up efforts to attract global digital-asset companies. On the same day, Binance revealed it had secured full authorization to operate its flagship Binance.com platform under ADGM oversight, following years of regulatory scrutiny.
Binance will operate through three separate legal entities — an exchange, a clearing house, and a broker-dealer — mirroring a traditional financial-market structure designed to enable regulated trading, custody, settlement, and off-exchange services.
Co-CEO Richard Teng said the approval reflects Binance’s commitment to meeting what he called ADGM’s “gold-standard” regulatory expectations. Pending final operational steps, Binance.com is expected to begin regulated activity under the ADGM framework on January 5, 2026, supporting Abu Dhabi’s strategy of combining strict oversight with openness to digital-asset innovation.
Tether Pushes Back Against Criticism
Tether has faced renewed scrutiny after BitMEX founder Arthur Hayes warned that a 30% drop in the company’s Bitcoin and gold holdings could eliminate its equity.
However, James Butterfill of CoinShares rejected these concerns, noting that Tether holds over $181 billion in reserves against $174.45 billion in liabilities, leaving a surplus of roughly $6.78 billion.
CEO Paolo Ardoino directly challenged Hayes’s claims, revealing that Tether Group’s total assets are closer to $215 billion, supported by approximately $7 billion in excess equity and an additional $23 billion in retained earnings.
He emphasized that Bitcoin and gold make up just 12.6% of reserves, with more than 70% held in short-term U.S. Treasuries. Ardoino also pointed out that critics have misinterpreted Tether’s attestation data, highlighting the company’s roughly $500 million per month in interest income.
