Key Takeaways
- Abu Dhabi’s digital asset regime came into force on Oct. 31.
- The Financial Services Regulatory Authority (FSRA) has published a list of approved stablecoins.
- USDC and USDT are both on the list as Circle and Tether compete for a share of the new regulated market.
Circle and Tether have secured key approvals from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi General Markets (ADGM).
The registrations come as USDC and USDT are vying for dominance of the Middle East’s financial hubs, which are rapidly embracing the technology to modernize markets.
ADGM List of Approved Stablecoins
Under the FSRA’s digital asset framework, only approved “fiat-referenced tokens” can be used for regulated activities within the ADGM.
Once the regime went into effect on Oct. 31, Abu Dhabi’s financial regulator published a list of approved stablecoins in November.
Taking a cue from neighboring Dubai, the list includes major stablecoins like USDC, USDT, and USDP.
Celebrating the milestone on Monday, Dec. 8, Tether CEO Paolo Ardoino said, “The UAE continues to set the global standard for digital asset regulation.”
“Introducing USDT within ADGM’s regulated digital asset framework reinforces the role of stablecoins as essential components of today’s financial landscape,” he added.
Securing Major Licenses
In addition to approval for its flagship stablecoin, USDC-issuer Circle has scored an even greater regulatory victory.
The company announced on Tuesday that it has secured a Financial Services Permission (FSP) license from the FSRA.
This paves the way for Circle to offer additional stablecoin services, including wallets, payments, custody, and brokerage.
The FSP permit grants Circle an edge in the race for market share, but Paxos is hot on its heels.
The rival stablecoin issuer received in-principle approval to offer crypto-brokerage and custody services in November, with full FSP registration anticipated next.
While a deeper regulatory stack has never been enough for Circle to catch up with Tether, it could be an important factor in Abu Dhabi.
Compared to more retail-oriented markets, ADGM is dominated by institutions. As regional banks and sovereign wealth funds embrace stablecoins, being able to offer regulated intermediary services provides an advantage.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
