Major Milestones for Regulated Stablecoin Operations in the Middle East
Stablecoin leaders Circle and Tether have both secured major regulatory approvals from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), marking a significant milestone for regulated stablecoin operations in the Middle East.
The approvals allow ADGM-licensed institutions to conduct stablecoin-related activities across multiple supported blockchains, greatly expanding their regulated use in one of the world’s fastest-growing digital asset hubs.
Circle Secures Financial Services License in the UAE
As part of its regional expansion, Circle received a Financial Services Permission (FSP) in ADGM, enabling the company to operate as a regulated money services provider. The license allows Circle to support payments, settlements, and financial infrastructure under ADGM’s strict regulatory framework.
Commenting on the development, Circle CEO Jeremy Allaire said:
“With our @DGlobalMarket FSRA licence secured, USDC is poised to support real-world payments, FX, settlements, and social use cases across the region.”
Tether’s USDT Recognized as an Approved Fiat-Referenced Token
At the same time, Tether announced that USDT has officially been recognized as an accepted fiat-referenced token within ADGM, allowing it to be used by licensed firms for regulated financial activities across several major blockchains.
Celebrating the milestone Tether CEO Paolo Ardoino stated:
“The UAE continues to set the global standard for digital asset regulation.”
The FSRA has since published its official list of approved stablecoins, formally confirming the regulatory status of both USDC and USDT within the financial zone.
USDC and USDT Compete for Institutional Dominance in the Middle East
The approvals come as USDC and USDT increasingly compete for dominance across the Middle East’s institutional financial sector, where adoption of blockchain-based payments and settlements is accelerating.
Unlike retail-driven crypto markets, ADGM is heavily institution-focused, with regional banks, fintechs, and sovereign wealth funds exploring the use of stablecoins for cross-border payments, treasury management, and on-chain settlements. In this environment, regulatory approval is a decisive competitive advantage.
Abu Dhabi Global Market has positioned itself as one of the world’s most advanced regulatory environments for digital assets, offering licenses for:
- •Crypto exchanges
- •Custody providers
- •Tokenization platforms
- •Staking and lending services
All under strict investor protection and financial crime prevention standards.
Major global firms like Binance and Kraken already operate under ADGM supervision.
UAE Continues to Set Global Standards for Crypto Regulation
The UAE is rapidly strengthening its status not only as one of the world’s largest crypto hubs, but also as a jurisdiction with clear, secure, and internationally respected crypto regulation.
Just days earlier, Binance also secured a full FSRA license, becoming the first global exchange to receive comprehensive regulatory approval with end-to-end supervision of its global operations and liquidity under ADGM.