Abu Dhabi’s Crypto Power Play: Tether and Circle Score Major Regulatory Wins

Abu Dhabi just flipped the script on crypto regulation—and the biggest stablecoin players just got their golden tickets.

The Gatekeepers Give a Nod

Forget the regulatory gray area. The Financial Services Regulatory Authority (FSA) in Abu Dhabi's global financial hub has handed out formal approvals that read like a VIP list for digital money. This isn't just a nod of approval; it's a structured framework saying, 'Play by our rules, and you can build here.'

Why This Move Cuts Through the Noise

While other jurisdictions debate and delay, Abu Dhabi is executing. By bringing giants like Tether (USDT) and Circle (USDC) into the fold, regulators aren't just legitimizing the assets—they're legitimizing the entire plumbing system of crypto markets. It signals to institutional money that the on-ramps and off-ramps are now official, supervised business.

It’s a classic move: attract the blue-chip names first, and the rest of the ecosystem will follow, hoping some of that regulatory sheen rubs off. After all, nothing makes a banker more comfortable than a government stamp—even if it’s on something they called a scam five years ago.

The Ripple Effect Beyond the Sand

This isn't an isolated policy. It's a direct shot in the global race to become the next crypto capital. By providing clarity where others create confusion, Abu Dhabi isn't just hosting companies; it's actively recruiting them. Watch for talent, capital, and innovation to start flowing toward the desert—a modern gold rush, backed by sovereign wealth.

The Bottom Line: A New Rulebook

Abu Dhabi’s playbook is simple: regulate the pillars, and the market builds itself. For crypto, it’s a watershed moment—proof that the old guard of finance and the new world of digital assets can, and will, find common ground. The cynical take? Traditional finance loves rules, and now it finally has a rulebook it can use to justify its crypto bets to the board. Game on.

Tether’s Stablecoin Recognized As ARFT, While Circle Obtains FSP License

Major developments related to the cryptocurrency sector have occurred in the United Arab Emirates (UAE) this week, with Tether and Circle both winning approvals in Abu Dhabi Global Market (ADGM), the international financial center and free economic zone of Abu Dhabi, UAE’s capital.

First, as Tether has announced in a press release, USDT issued on a number of blockchains has been recognized as an Accepted Fiat-Referenced Token (ARFT) in ADGM. USDT already received approval from ADGM last year, but the previous recognition only included the Ethereum, Solana, and Avalanche versions. With the new regulatory nod, USDT available on Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON has also entered the market.

“By extending recognition to USD₮ on several major blockchains, ADGM further strengthens Abu Dhabi’s position as a global hub for compliant digital finance,” said Tether CEO Paolo Ardoino.

USDT being considered as an ARFT means that authorized persons licensed by ADGM’s Financial Services Regulatory Authority (FSRA) can offer regulated activities involving the stablecoin on nearly all its native blockchains. “Introducing USD₮ within ADGM’s regulated digital asset framework reinforces the role of stablecoins as essential components of today’s financial landscape,” noted Ardoino.

Meanwhile, Circle, the issuer of USDC, has also advanced in the region with a new license from the FSRA, according to an announcement. The license, called the Financial Services Permission (FSP), allows the company to operate as a Money Services Provider in ADGM.

Arvind Ramamurthy, ADGM Chief Market Development Officer, said:

Circle’s regulated presence in ADGM reinforces our ambition to build a trusted, institutional-grade digital asset ecosystem in Abu Dhabi, one that enhances market confidence, supports real-world use cases, and cements the UAE’s role as a leading hub for regulated digital finance.

The greenlight from ADGM follows the recognition of Circle’s USD and EUR stablecoins by the Dubai Financial Services Authority (DFSA) in February of this year. The MOVE made USDC and EURC the first stablecoins to be approved in the Dubai International Financial Centre (DIFC).

The new FSP license means “Circle is positioned to expand regulated payment and settlement use cases in the UAE for businesses, developers, and financial institutions,” the statement noted.

Stablecoins have witnessed rapid growth throughout 2025, setting multiple records. The near-constant growth in these tokens, however, saw a break in October, as the combined market cap of this side of the cryptocurrency sector reversed course.

As the above chart from DefiLlama shows, the stablecoin market cap declined to a low in mid-November. Since this bottom, though, capital inflows have returned for these fiat-tied assets, with the market cap once again nearing in on a new record.

Bitcoin Price

At the time of writing, Bitcoin is floating around $90,100, up almost 4% in the last seven days.