What Is ADGM’s Official Recognition of USDT as a Fiat-Referenced Token in 2025

The Abu Dhabi Global Market (ADGM) formally recognized Tether’s USDT as an approved fiat-referenced token across nine additional major blockchains, dramatically expanding its regulated use within one of the world’s most progressive financial free zones.

The new approval now covers Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON — on top of the previously recognized Ethereum, Solana, and Avalanche networks. This move cements USDT’s position as the most institutionally accepted stablecoin in the Middle East and underscores the UAE’s ambition to become the global hub for regulated digital asset activity.

What Is ADGM’s Fiat-Referenced Token Framework

ADGM’s Virtual Asset Regulatory Authority (VARA equivalent) introduced a comprehensive stablecoin regime in 2024 that classifies “fiat-referenced tokens” (FRTs) as regulated digital representations of fiat currency. Issuers must meet strict criteria:

• 1:1 reserve backing with high-quality liquid assets
• Regular independent attestations and audits
• Segregated client money rules
• Robust redemption guarantees

USDT’s inclusion means licensed ADGM entities — banks, payment firms, custodians, exchanges, and investment managers — can now legally issue, hold, transfer, and settle in USDT across the approved chains as part of regulated activities.

• First major jurisdiction to recognize USDT on 12 different blockchains simultaneously
• Treats USDT as a compliant digital cash equivalent for institutional use
• Reserves must be held with UAE-licensed or equivalently regulated custodians
• Enables seamless cross-chain stablecoin flows under a single regulatory umbrella
• Aligns with UAE’s broader “Digital Dirham” and blockchain strategy

Why This Recognition Matters for Stablecoins in 2025

The ADGM approval is one of the clearest signals yet that USDT has transitioned from “crypto dollar” to institutionally sanctioned settlement layer. Key implications:

• UAE banks and payment companies can now offer USDT accounts and transfers natively
• Corporate treasuries in the free zone can hold USDT as treasury reserves
• Licensed funds can include USDT in liquidity portfolios
• Cross-border payments and trade finance flows can settle instantly on any of the 12 approved chains
• Provides regulatory certainty for DeFi and CeFi integration in a major financial center

Tether CEO Paolo Ardoino stated: “This recognition highlights the growing role stablecoins are playing in modern finance and confirms the UAE’s leadership in building a safe, innovative digital asset ecosystem.”

How This Fits into UAE’s Broader Crypto Strategy

The USDT approval arrives days after Binance received full operational authorization in ADGM, signaling coordinated momentum:

• Abu Dhabi is positioning itself as the “regulated crypto capital” of the Middle East
• Over $300 billion in sovereign and institutional capital is actively deploying into digital assets
• ADGM now hosts the deepest regulated liquidity pools for USDT outside the United States
• Creates a blueprint for other GCC jurisdictions (Dubai, Bahrain, Saudi Arabia) to follow

Future Outlook for Regulated Stablecoins

With this framework in place, market participants expect:

• Rapid growth of USDT on-chain volume originating from UAE entities
• Increased institutional bridging between ADGM-licensed firms and global DeFi protocols
• Potential for tokenized money-market funds and RWA platforms using USDT as base currency
• Further chain expansions as ADGM continues quarterly reviews

ADGM’s recognition of USDT across twelve major blockchains marks a watershed moment for stablecoin adoption, proving that the world’s largest stablecoin can operate under strict institutional-grade regulation while remaining fully multi-chain.

Institutions and users interested in regulated stablecoin activity should refer to official ADGM licensing lists and Tether’s transparency reports. As always, engage only through licensed entities and prioritize secure, compliant wallet infrastructure when transacting in digital assets.