In a landmark decision, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has granted official recognition to USDT on the TRON network as an Accepted Fiat-Referenced Token (AFRT). As stated in the official source, this move marks a significant step towards the integration of stablecoins into the regulated financial landscape of the UAE.
Approval for Financial Activities Using USDT
The approval allows firms licensed by the FSRA to engage in a variety of financial activities using USDT, including payments, settlements, custody, and trading. This development is expected to enhance the operational capabilities of these firms, providing them with more flexibility in managing digital assets.
Commitment to Regulatory Cooperation and Innovation
Furthermore, this decision underscores ADGM's commitment to fostering regulatory cooperation and innovation within the financial sector. By integrating stablecoins like USDT into the financial system, the FSRA aims to ensure compliance with local standards while promoting the growth of digital finance in the region.
The recent recognition of USDT by the FSRA highlights the evolving landscape of digital finance, while a report by 071Labs emphasizes the importance of on-chain connectivity for Web3 neobanks. For more insights, see Web3 neobanks.
