Tether’s USDT Gains Recognition as Accepted Virtual Asset in Abu Dhabi

As a seasoned crypto investor with a keen eye for regulatory developments and market trends, I find Tether’s USDT’s approval as an Accepted Virtual Asset (AVA) within the Abu Dhabi Global Market (ADGM) to be a significant milestone. This move not only signifies Tether’s compliance with regional standards but also opens up opportunities for its inclusion in licensed financial services, aligning with the UAE’s vision to modernize its financial sector and promote diversification.

The Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM) has given its approval to Tether’s USDT stablecoin, categorizing it as an Accepted Virtual Asset (AVA). This means that financial institutions under the FSRA jurisdiction can now offer services related to USDT without prior approval.

A Major Regulatory Boost for Tether’s USDT

The endorsement of USDT in ADGM signifies that it adheres to the local regulatory norms, opening up possibilities for its integration into regulated financial services. This action is consistent with the UAE’s initiatives aimed at updating its financial system and fostering economic diversity.

In November, Tether added approximately $5 billion to the market. On November 6 alone, they produced over a billion USDT, a move that aligned with Bitcoin‘s price surge.

In the past seven days, Tether added another 2 billion USDT to its circulation, raising the total issued since November to a whopping 19 billion. Following the regulatory nod given by ADGM on December 10th, the market cap of USDT skyrocketed to an impressive $138 billion.

Our CEO, Paolo Ardoino, stated that the innovative strategy of the UAE in regulating virtual assets serves as a model for the world, and he is pleased that USDT can contribute significantly to economic advancement and digital evolution within the region.

In Q3 of 2024, Tether announced remarkable profits amounting to $2.5 billion, bringing its yearly earnings to a staggering $7.7 billion. The company’s quarterly report underscored its impressive financial strength within the crypto industry with total assets valued at approximately $134.4 billion.

The entity responsible for producing stablecoins is considering broadening its horizons beyond the cryptocurrency market. Notably, Tether has recently finalized its inaugural crude oil transaction in the Middle East, successfully executing a $45 million deal involving 670,000 barrels of oil using USDT.

The company is also exploring lending opportunities for international commodities traders. Tether is particularly looking into developing markets, leveraging its substantial profits and industry connections.

Although Tether has garnered significant accomplishments, it continues to face examination from U.S. regulatory bodies. Previous reports from the Wall Street Journal suggest that the Manhattan District Attorney’s Office is looking into the firm, exploring possible instances where its platform was utilized for illegal activities.

On the contrary, Tether’s CEO, Paolo Ardoino, refuted these allegations. He asserted that the company has found no evidence suggesting a federal probe is underway.

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2024-12-10 19:43