Tether’s stablecoin USD₮ has been recognized as an accepted virtual asset in the Abu Dhabi Global Market (ADGM), the company announced on Tuesday.
The approval from the Financial Services Regulatory Authority means that companies which are licensed can offer pre-approved USD₮ services in Abu Dhabi’s Global Market. Though, the release did not say what those approved services might be. CoinDesk reached out to Tether for comment.
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Tether ‘s USD₮ exceeded a $138 billion market cap but the company wants to continue advancing its growth, the statement said.
“By bringing USD₮ to the forefront of ADGM’s regulated virtual asset framework, we are not only validating the importance of stablecoins as critical tools for modern finance but also opening new doors for collaboration and growth across the Middle East,” said Paolo Ardoino, CEO of Tether, in a press release.
The United Arab Emirates has been praised for being a crypto hub. Abu Dhabi, its capital, started regulating crypto activities including those undertaken by exchanges and custodians in 2018 ahead of most regulators. The European Union will begin enforcing its rules in the coming days and the U.K. by 2026.
Circle, another stablecoin issuer, is also diving into the Middle East after incorporating a company in the ADGM, it said in a statement.