As an analyst with over two decades of experience in the finance and technology sectors, I must admit that Tether’s latest move into Abu Dhabi is nothing short of impressive. Having witnessed the rise of stablecoins and their impact on global finance, it’s clear that they are becoming increasingly crucial for modern financial systems.
According to Tether, the United States dollar-backed digital coin has been given approval by the Financial Services Regulatory Authority of Abu Dhabi as a recognized virtual asset.
As of December 10th, Tether (USDT) can now be accessed by authorized individuals and institutions that are subject to regulation within the Abu Dhabi Global Market. The Financial Services and Regulatory Authority (FSRA), based in Abu Dhabi, is responsible for regulating this market. The FSRA operates under the jurisdiction of the Abu Dhabi Global Market (ADGM), which functions as a financial-free zone within the United Arab Emirates.
As a crypto investor, I understand that USDT’s approval falls under the Financial Services Regulatory Authority’s (FSRA) jurisdiction to oversee virtual asset service providers (VASPs) in this country. In line with this, VASPs like me are expected to adhere to anti-money laundering and countering financing of terrorism regulations.
In their statement, Tether revealed that the approval grants FSRA-registered individuals and organizations the ability to provide USDT-based services in the specified region. Essentially, these services have already been pre-approved by the agency. Consequently, users within the ADGM can now utilize USDT on Ethereum, Solana, and Avalanche networks.
Paolo Ardoino, chief executive officer of Tether, commented:
Reaching this significant point emphasizes Tether’s dedication towards promoting worldwide financial accessibility and technological advancement. By positioning USD₮ at the heart of ADGM’s regulated digital asset system, we are not only confirming the significance of stablecoins as essential components in today’s finance, but also creating opportunities for partnership and expansion throughout the Middle East.
USDT, the most prominent stablecoin tied to the U.S. dollar, boasts a market capitalization of more than $138 billion. Its widespread use in both payment systems and cryptocurrency markets has given it a leading position compared to other stablecoins. This dominance has significantly boosted Tether’s income, resulting in impressive financial records.
On December 9th, Tether disclosed that at the beginning of the final quarter of 2024, over-the-counter (OTC) wallets holding USDT had reached a staggering 109 million. Furthermore, it was reported that a total of more than 400 million wallets have received USDT in their history.
Elsewhere, the Middle East and North Africa region has increasingly become a key market.
This May, Tether unveiled its growth plans in the UAE through a partnership with web3-centric platform RAK Digital Assets Oasis. The alliance was designed to boost the adoption of Bitcoin (BTC) and stablecoins within technology infrastructure, specifically in the sixth-largest city of the UAE, Ras Al Khaimah.
In August, Tether revealed plans for a dirham-pegged stablecoin.
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2024-12-10 18:12