Tether (USDT) officially approved as a permitted cryptocurrency in Abu Dhabi

The Abu Dhabi Global Market (ADGM) regulator has officially approved Tether’s USDT as a permitted virtual asset (AVA).
The ADGM Financial Services Regulator's approval of USDT stablecoins means that financial institutions licensed within ADGM
Financial service providers can now offer related services to help integrate USDT into the regulated financial ecosystem.
The approval covers USDT issued on multiple blockchains, including Ethereum, Solana, and Avalanche, and is the first in the Arab world to do so.
This is in line with the UAE's strategy to become a global hub for digital finance.
USDT, which has a market capitalization of over $138 billion (approximately 20.912 trillion yen), is included in AVA.
The addition of USDT will further strengthen USDT’s position as the largest stablecoin in the stablecoin sector and play a key role in bridging the gap between traditional finance and the digital asset market.
On the one hand, stablecoins have achieved integration with traditional finance through regulation, but some regulators are concerned about this integration.
The U.S. Financial Services Oversight Commission (FSOC) has argued that stablecoins could pose a threat to financial stability due to a lack of robust risk management standards.
The FSOC noted that the “stablecoin market is highly centralized,” with a single entity (Tether) accounting for roughly 70% of the sector’s total market value.