Tether’s USDT Officially Approved in Abu Dhabi

Abu Dhabi has officially accepted Tether’s USDT stablecoin, allowing it to be used in local financial services as part of the UAE’s goal to lead in digital finance.

What This Approval Means
Financial service providers in Abu Dhabi’s Global Market (ADGM) can now offer services involving USDT, including versions of the stablecoin on blockchains like Ethereum, Solana, and Avalanche. This move fits with the UAE’s plan to become a digital finance leader.

Tether’s Growing Dominance
With over $138 billion in market value, Tether remains the largest stablecoin, and its inclusion as an accepted virtual asset further cements its role in bridging traditional and digital finance.

Concerns from Regulators
The U.S. Financial Services Oversight Council (FSOC) has warned about the risks posed by stablecoins, especially the lack of risk management. Tether controls around 70% of the stablecoin market, which could lead to financial instability if something goes wrong.

Tether’s $5 Billion Impact
In November, Tether minted $5 billion in new USDT, raising its market cap from $124 billion to $138 billion by mid-December, coinciding with Bitcoin’s price surge.

---