Tether's USDT approved as accepted virtual asset in Abu Dhabi
Tether's (CRYPTO:USDT) USDT stablecoin has been officially recognized as an Accepted Virtual Asset (AVA) by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM).
This approval allows licensed entities under the FSRA to offer pre-approved services related to USDT, marking a significant regulatory development for Tether.
The recognition of USDT in ADGM demonstrates compliance with the region's regulatory standards and supports the UAE's initiatives to modernize its financial sector and promote diversification.
In November, Tether injected over $5 billion into the market, minting more than $1 billion USDT on November 6, coinciding with a rally in Bitcoin prices.
Following the approval on December 10, USDT's market capitalisation surged to $138 billion, reflecting its growing influence in the cryptocurrency market.
“The UAE’s forward-thinking approach to virtual asset regulation sets a global benchmark, and we are proud that USDT can play a pivotal role in driving economic progress and digital transformation in the region,” stated Tether CEO Paolo Ardoino.
In addition to its recent successes, Tether reported record profits of $2.5 billion in Q3 2024, bringing its total earnings for the year to $7.7 billion.
The company’s quarterly report indicated total assets of $134.4 billion, showcasing its financial strength within the crypto sector.
Tether is also expanding its operations beyond cryptocurrency. Recently, it completed its first crude oil transaction in the Middle East, executing a $45 million deal for 670,000 barrels of oil using USDT.
Furthermore, Tether is exploring lending opportunities for international commodities traders, particularly focusing on developing markets.
Despite these advancements, Tether continues to face scrutiny from U.S. regulators.
Reports have emerged indicating that the Attorney’s Office in Manhattan is investigating potential misuse of its platform for illicit activities.
However, Ardoino has denied these claims, stating that Tether has not identified any indications of a federal investigation.
At the time of reporting, the Tether price was $1.00.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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