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

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As a seasoned crypto investor with over a decade of experience navigating the digital asset market, I find Tether’s USDT’s recent recognition as an Accepted Virtual Asset (AVA) in Abu Dhabi nothing short of revolutionary. My personal journey began during the early days of Bitcoin, and witnessing the evolution of stablecoins like USDT has been a fascinating ride.

In simple terms, Tether’s USDT, the leading stablecoin in the digital currency sector, has made a notable advancement. It has now been given legal status as an Approved Digital Asset (ADA) within the region of Abu Dhabi.

On Tuesday, Tether announced that the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) had granted it a distinction following thorough regulatory review. This refers to USDT, currently valued at $1.00, with a 24-hour volatility of only 0.1%, a market capitalization of $138.34 billion, and a trading volume of $266.41 billion over the same period.

Tether’s USDT Makes History in UAE

As a crypto investor, I’m excited to learn that stablecoins can now be utilized by licensed firms within the Abu Dhabi Global Market (ADGM) for cross-border transactions. Not only can these companies use USDT for payment purposes, but they are also permitted to provide additional services associated with it. This means a smooth and regulated integration of USDT into the financial ecosystems we all operate in.

This recognition encompasses USDT tokens minted on various blockchain platforms such as Ethereum, Solana, and Avalanche. It is in line with the UAE’s ambitious goal to become a leading international center for digital finance.

Reaching over $138 billion in market capitalization underscores USDT’s prominent role within the digital asset sector. This influential stablecoin has garnered substantial attention from conventional financial entities, notably due to its effectiveness in streamlining international money transfers.

In Abu Dhabi, USDT has recently gained recognition, opening up opportunities for it to fuel a diverse array of advanced applications within the region. The CEO of Tether, Paolo Ardoino, spoke about this progress, stating that this enhanced positioning of USDT in the city will stimulate even more innovation.

Ardoino stated that this milestone emphasizes Tether’s dedication to promoting global financial accessibility and advancement. By placing USD₮ at the center of ADGM’s regulated virtual asset system, we are demonstrating the significance of stablecoins as essential instruments for contemporary finance, while also paving the way for increased collaboration and growth opportunities throughout the Middle East.

Tether Unlocked $5B Worth of USDT in November

Previously, Tether had shown impressive growth in the market by expanding its operations through the issuance of digital tokens. Specifically, in November, they significantly boosted their supply by generating over $5 billion of USDT in just 3 days.

According to the blockchain analysis firm Spot On Chain, it was on November 6th that the initial batch of USDT (Tether’s stablecoin) was created, with around $1 billion worth of this digital currency being released into circulation by Tether at that time.

Over the course of the specified period, my analysis reveals a surge in minting activities for USDT that significantly boosted its market capitalization. By early November, the figure stood at around $124 billion. However, by November 26, this had climbed to $132 billion due to these activities. This upward trend continued, and on December 10, the market capitalization reached an impressive $138 billion, a significant milestone following the approval granted by the ADGM.

Tether’s recognition of USDT as an Accepted Virtual Asset by the ADGM represents a significant achievement for the virtual asset industry in this region, they stated. This approval indicates that USDT aligns with the regulator’s standards, making it easier for its inclusion in the services provided by licensed entities within the ADGM regulatory framework.

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2024-12-10 23:21