Tether’s stablecoin USD₮ has been recognized as a recognized virtual asset by the Abu Dhabi Global Market (ADGM), the company announced on Tuesday.
Approval from the Financial Services Regulatory Authority means licensed companies can offer pre-approved USD₮ services on the global market in Abu Dhabi. However, the release did not say what the approved services would be. CoinDesk has reached out to Tether for comment.
Tether's USD₮ has surpassed $138 billion in market capitalization, and the company said in a statement that it wants to continue to grow.
“By placing USD₮ at the forefront of ADGM’s regulated virtual asset framework, we not only validate the importance of stablecoins as key tools of modern finance, but also encourage collaboration and growth across the Middle East. It also opens new doors for us,” CEO Paolo Ardoino said. Tether said in a press release.
The United Arab Emirates is hailed as a crypto hub. In 2018, the capital Abu Dhabi was ahead of most regulators in regulating cryptocurrency activity, including that carried out by exchanges and custodians. The European Union will start enforcing the rules in the coming days, and the UK will start implementing them by 2026.
Another stablecoin issuer, Circle, is also expanding into the Middle East after incorporating companies into ADGM, it said in a statement.
