USDT gains regulatory recognition in Abu Dhabi: what does it mean for traders?

Tether’s USDT stablecoin has reached a significant milestone by receiving official status as an Accepted Fiat-Referenced Token (AFRT) from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM). This recognition opens new possibilities for authorized institutions operating in the Abu Dhabi region.

Expansion across multiple blockchains

With this regulatory approval, USDT can now be used in authorized operations across 9 different blockchain networks: Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON. This decision adds to the previous approval granted by the FSRA in 2024 for Ethereum, Solana, and Avalanche, consolidating USDT’s presence in a highly diversified blockchain ecosystem.

What this recognition entails

The official AFRT status validates that USDT meets rigorous standards of resilience, transparency, and regulatory oversight established by Abu Dhabi financial authorities. For traders and users, this means greater legal security and institutional confidence when using USDT within regulated services in the region.

The broader context

This move reinforces Abu Dhabi’s position as an emerging regulatory hub for digital assets. According to industry leaders, decisions like this set an important precedent for how other territories can balance innovation with regulatory protection. The region also maintains a list of approved stablecoins from other recognized issuers in the sector.

Why does it matter?

For those operating or planning activities related to cryptocurrencies in Abu Dhabi, this recognition paves the way for greater institutional adoption. The supported blockchain diversity offers flexibility in how users can access USDT according to their specific needs. Additionally, a clear regulatory framework fosters future collaborations and the development of new products in the Gulf region.