In a development that reads like the sequel to one of this year’s most talked-about stablecoin regulatory stories, the Abu Dhabi Global Market (ADGM) has now formally accepted USDT on the TRON blockchain as an Accepted Fiat-Referenced Token (AFRT) under its Financial Services Regulatory Authority (FSRA).
The announcement was confirmed in an X post by TRON DAO, highlighting that licensed Authorized Persons in ADGM can now use USDT on TRON in carrying out regulated activities.
This marks an important progression from the regulatory moment first covered by Unlock Blockchain in “Tether USDT in ADGM: A Win with a TRON Twist,” an article that highlighted how early recognition of USDT in ADGM did not include TRON-minted supply, despite its outsized share of the global stablecoin market.
From “TRON Twist” to Regulatory Inclusion
When ADGM initially recognized USDT as an accepted virtual asset under its framework, the absence of TRON-minted USDT was a noteworthy detail precisely because TRON hosted one of the largest portions of USDT issuance globally, a fact that colored interpretations of the UAE’s regulatory stance.
Today’s confirmation represents a full circle:
- TRON DAO’s announcement states clearly that USDT on the TRON network has been embraced as an AFRT by the FSRA. This enables firms licensed within ADGM to integrate TRON-based USDT into regulated activities, from settlement and trading to custody and payments.
- The recognition addresses the nuance noted in the 2024 analysis, whereby TRON-minted USDT was conspicuously missing despite its dominant position in stablecoin liquidity.
A Narrative of Regulatory Evolution
This shift is significant on several fronts:
- Regulatory clarity for a major stablecoin stack: TRON’s network is known for its transaction efficiency and has historically held one of the largest circulating supplies of USDT globally. The FSRA’s acceptance means that this liquidity pool is now usable within ADGM’s regulated digital financial ecosystem.
- ADGM’s steady progression: Building on prior approvals for USDT across multiple blockchain networks, the inclusion of TRON under the AFRT banner reinforces Abu Dhabi’s evolving approach to stablecoins; pragmatic, multi-chain, and rooted in licensed regulatory activity.
- From recognition to regulated utility: Where the earlier regime granted USDT an “accepted virtual asset” status (granting custody and holding by regulated entities), today’s acceptance under AFRT directly enables active regulated use of TRON-issued USDT within financial products and services.
What This Means for the UAE’s Digital Finance Landscape
For the UAE’s financial ecosystem, this development is more than a checkbox on a regulatory list. It highlights:
- A maturing stablecoin regulation regime that now embraces high-liquidity, multi-chain stablecoin rails within a regulated framework.
- Greater interoperability for regulated entities in ADGM, now able to leverage TRON’s throughput and cost advantages for USDT-related services.
- A narrative shift from “recognition without TRON” to “regulatory inclusion of TRON-based USDT for real-world regulated use,” closing a chapter that began with cautious ambiguity in 2024.
In short, what was once seen as a TRON-shaped gap in ADGM’s stablecoin policy is now an explicitly covered part of the jurisdiction’s regulatory regime, a material development for regional stablecoin utility and a noteworthy point of regulatory evolution for digital asset markets.
Additional Regulatory Context: Why This Approval Matters Beyond TRON
Beyond closing the “TRON Twist,” the FSRA’s decision further cements ADGM’s positioning as one of the world’s most advanced stablecoin regulators.
Under ADGM’s dedicated stablecoin framework introduced in 2024, Accepted Fiat-Referenced Tokens must meet strict criteria around full reserve backing, transparency, and anti-money laundering controls. Notably, the framework also allows yield-bearing stablecoins, enabling issuers to share income generated from reserves, a feature that remains rare among global financial centers.
USDT on TRON joins a growing list of AFRTs that already includes Circle’s USDC and Paxos-issued stablecoins, with USDT first gaining AFRT recognition across other major blockchains, including Ethereum, Solana, and Avalanche, earlier in December. TRON’s inclusion completes that multi-chain coverage.
TRON DAO framed the approval as validation not only of the network’s technical efficiency, but also its compliance posture. According to the organization, the FSRA’s acceptance reflects confidence in TRON’s governance standards and financial crime controls, including collaboration with global law enforcement through initiatives such as the T3 Financial Crime Unit, which targets illicit use of USDT on the network.
ADGM’s Multi-Chain Strategy Comes Into Focus
The broader implication is strategic. By approving USDT across multiple blockchains rather than privileging a single network, ADGM enables seamless movement of regulated liquidity across chains, improving capital efficiency for trading, payments, and custody services.
This approach has helped attract major global players. ADGM has issued more than 15 crypto-related licenses in recent years, with exchanges such as Binance and Kraken receiving full authorization, and stablecoin issuers like Circle securing Financial Services Permission to operate as Money Services Providers.
For stablecoin issuers, the clarity is equally important. Tether’s engagement with the FSRA reportedly involved detailed demonstrations of operational reserve management, reinforcing the regulator’s emphasis on transparency and systemic resilience.
Closing the Loop on a “Partial Win”
As mentioned, this latest development also resolves the ambiguity first highlighted in “Tether’s USDT Recognized in ADGM: A Partial Win with a TRON Twist,” where USDT’s initial recognition in ADGM notably excluded TRON-minted supply despite the network’s dominant share of circulation. At the time, the omission raised questions around network-specific scrutiny and regulatory caution.
The FSRA’s subsequent acceptance of USDT on TRON as an AFRT now reframes that moment as transitional rather than exclusionary, suggesting not a permanent regulatory rejection, but a phased approach to stablecoin recognition that ultimately brought TRON-based USDT into ADGM’s regulated financial perimeter.
Final Thought
With TRON-based USDT now formally inside ADGM’s regulatory perimeter, the UAE’s stablecoin framework looks increasingly complete, interoperable, and institution-ready.
What began as a regulatory footnote has evolved into a clear signal: high-liquidity, multi-chain stablecoins are no longer peripheral to regulated finance in the region, they are foundational.
