Abu Dhabi Global Market approves USDT as a 'Recognized Virtual Asset', ushering in a new era for Stablecoins

Abu Dhabi Global Market (ADGM) has officially approved USDT as an 'approved virtual asset,' opening the door for the integration of Stable Coin into the Compliance financial ecosystem, marking a major breakthrough in the global Stable Coin market.

According to the statement from Tether, the issuer of USDT, this approval covers USDT on-chain on Ethereum, Solana, and Avalanche, which also means that licensed Financial Service providers within ADGM can now legally offer Financial Services related to USDT.

Currently, the Market Cap of USDT has exceeded $138 billion, firmly establishing its position as the leader in the Stable Coin market. This recognition not only further consolidates the market advantage of USDT, but also builds a more solid bridge between global Stable Coins and TradFi and digital assets.

Stable Coin integrated into the mainstream, promoting financial innovation

ADGM's decision not only symbolizes that Stable Coin is gradually being accepted by the global financial system, but also reflects the important role of Stable Coin in connecting TradFi and the digital asset market.

However, even if Stable Coin is gradually accepted in the global regulatory framework, market concerns about its risks have not subsided. For example, the US Financial Stability Oversight Council (FSOC) has pointed out that the Stable Coin market is too centralized, with Tether alone accounting for about 70% of the market cap. This structural risk may bring the risk of bank runs and systemic collapse.

Tether continues to expand, and the influence of stablecoin cannot be ignored

Despite concerns about the regulation of stablecoins from the outside world, the market momentum of Tether is not to be underestimated. In November of this year, Tether issued more than 5 billion USDT in just 72 hours, and this large-scale issuance wave accompanied the surge of BTC price to a high of $76,200.

After this issuance, the Market Cap of USDT surpassed $124 billion in early November and climbed to approximately $138 billion on December 10th after obtaining approval from ADGM, solidifying its dominant position in the Stable Coin market once again.

The article titled 'Abu Dhabi International Financial Center approves USDT as a 'recognized virtual asset', Stable Coin enters a new era' was first published in Blocklike.