TLDR
ADGMs regulator approved stablecoins by recognizing USDT as an Accepted Fiat?Referenced Token across multiple chains and granting Circle a Financial Services Permission to offer regulated USDC services in Abu Dhabis free zone (recognition of USDT, Circles license).
- USDT gained multi?chain AFRT recognition for regulated use by ADGM?licensed firms (multi?chain approval).
- Circle received an FSRA Financial Services Permission to operate as a Money Services Provider for USDC (FSP detail).
- The FSRA published a list of approved fiat?referenced tokens used in ADGM regulated activities including USDC, USDT, and USDP (approved list).
Deep Dive
1. USDT AFRT Recognition
ADGM formally recognized Tether USDt as an Accepted Fiat?Referenced Token, enabling licensed firms to use USDT in regulated trading, custody, and settlement within the zone. This extends earlier recognition on Ethereum, Solana, and Avalanche to nine additional networks such as Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and Tron (recognition summary, multi?chain expansion).
ADGM?licensed institutions can support USDT across more chains under a single regulated framework, improving settlement flexibility without stepping outside oversight.
2. Circle FSP for USDC
Circle obtained a Financial Services Permission from ADGMs FSRA to operate as a Money Services Provider. The license allows Circle to deliver regulated USDC payment and settlement services for businesses and institutions in the UAEs capital market free zone (license news, service scope).
USDC rails can be used by ADGM?licensed firms with formal oversight, giving institutions clearer compliance pathways for on?chain payments and treasury operations.
3. Approved Token List
Under its digital asset regime, the FSRA published a list of approved fiat?referenced tokens that can be used for regulated activities within ADGM. Recent reporting indicates the list includes major stablecoins such as USDC, USDT, and USDP (list overview).
A defined roster of permitted stablecoins reduces ambiguity for market participants and aligns institutional use with a clear rule set.
Conclusion
ADGMs actions formalize how stablecoins can be used in a regulated setting. Recognizing USDT as an AFRT and licensing Circle for USDC services gives institutions a compliant path to on?chain settlements and custody. The approved token list adds clarity, supporting broader adoption while keeping activities within supervisory guardrails.
CoinsKid.Com