USDT on TRON Gets Regulatory Green Light in Abu Dhabi

USDT on TRON has been formally recognized as an Accepted Fiat-Referenced Token (AFRT) by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This approval allows FSRA-licensed firms, known as Authorised Persons, to use USDT issued on the TRON network in regulated financial activities within one of the Middle East’s most prominent financial centers.

The decision places USDT on TRON within ADGM’s regulated stablecoin framework and confirms that this version of the world’s largest stablecoin meets local requirements for reserve backing, compliance, and operational oversight. For crypto firms operating in or through Abu Dhabi, the approval removes uncertainty around using USDT on TRON for payments, settlements, custody, and trading.

What Does AFRT Status Mean in ADGM?

The Accepted Fiat-Referenced Token designation is a formal regulatory classification under ADGM’s digital asset rules. It signals that a stablecoin has met strict standards set by the FSRA and can be used by licensed firms in day-to-day regulated business.

In practical terms, AFRT status allows Authorised Persons to use the token for activities such as:

• Processing client payments and transfers
• Settling trades on exchanges or trading platforms
• Holding assets in custody for institutional or retail clients
• Supporting onchain trading and brokerage services

Without AFRT status, stablecoins cannot be used freely by regulated firms in ADGM. The approval therefore represents a compliance milestone rather than a technical upgrade.

Why was USDT on TRON Approved?

TRON DAO confirmed the approval in a public statement, noting that the FSRA’s decision enables licensed entities to integrate USDT on TRON into approved services. According to TRON DAO, the recognition reflects the network’s focus on regulatory cooperation, transparent governance, and security controls.

“The FSRA’s acceptance of USDT on TRON acknowledges not only the technical efficiency and scalability of our network, but also our comprehensive approach to decentralized governance and financial crime prevention,” John Hurston, General Counsel for TRON DAO in the United States. “This has been demonstrated in part by the success of the T3 Financial Crime Unit, which works closely with global law enforcement to combat use of USDT on TRON for illicit purposes.” 

This emphasis on financial crime prevention is central to ADGM’s stablecoin framework. Regulators in Abu Dhabi require clear controls around anti-money laundering, counter-terrorist financing, and transaction monitoring. The FSRA’s acceptance suggests that USDT on TRON met those expectations.

How USDT on TRON Fits Into the UAE Financial System

USDT on TRON is widely used by both retail and institutional users due to its low transaction fees and fast settlement times. In regions where onchain payments are common, TRON-based USDT is often used for remittances, trading, and treasury operations.

With AFRT status in ADGM, licensed firms can now use USDT on TRON while staying within the UAE’s regulatory perimeter. This supports the broader goal of modernizing financial infrastructure without removing regulatory oversight.

TRON DAO has stated that the approval supports the diversification and modernization of the UAE’s financial landscape. From a regulatory perspective, it also signals confidence in using multiple blockchain networks rather than limiting stablecoin activity to a single chain.

What Regulated Firms Can Now do With USDT on TRON

The approval does not apply to unlicensed entities or informal use. It specifically applies to Authorised Persons regulated by the FSRA. For these firms, the approval opens several operational paths.

They can now:

• Accept USDT on TRON as a payment method from clients
• Use it to settle trades faster than traditional banking rails
• Offer custody services involving USDT on TRON
• Integrate it into compliant trading platforms and brokers

This matters for exchanges, payment providers, custodians, and fintech firms operating under ADGM licenses. It reduces friction when moving value onchain while maintaining regulatory clarity.

Why TRON Matters in the Global Stablecoin Market

The TRON network hosts the largest circulating supply of USDT among all blockchains. As of the latest data provided, USDT’s total market capitalization stands at $186.74 billion, with a significant share issued on TRON.

Several factors explain this concentration:

• Low transaction costs compared to many other networks
• Fast block times that support high payment volumes
• Strong adoption in cross-border payments and trading

Because of this scale, regulators assessing USDT cannot ignore TRON. Approval in ADGM signals that the FSRA has reviewed not just the stablecoin issuer, but also the network infrastructure supporting it.

How This Approval Compares to Other Blockchains

USDT did not receive AFRT status on TRON in isolation. On December 8, Tether’s stablecoin was approved as an Accepted Fiat-Referenced Token across several blockchains, including Ethereum, Solana, and Avalanche. The TRON-specific recognition followed in the weeks after.

This staged approach reflects ADGM’s blockchain-neutral policy. Rather than favoring one network, the FSRA evaluates stablecoins across multiple infrastructures. This allows firms to move liquidity between chains without regulatory barriers.

From a market perspective, this improves interoperability. Firms operating in ADGM can choose the network that best fits their cost, speed, and technical needs while remaining compliant.

What is Abu Dhabi Global Market?

Abu Dhabi Global Market is an international financial center established in 2015. It operates under its own legal system based on English common law, separate from the wider UAE legal framework.

Over the past decade, ADGM has positioned itself as a forward-looking regulator for digital assets. It has focused on clear rules, predictable enforcement, and licensing pathways that appeal to global firms.

Key features of ADGM include:

• Independent courts and legal framework
• Dedicated digital asset regulations
• Active engagement with crypto exchanges and stablecoin issuers

By 2025, ADGM had issued more than 15 crypto-related licenses. Major exchanges such as Binance and Kraken received full authorization, reinforcing the jurisdiction’s credibility.

How ADGM Regulates Stablecoins

In 2024, ADGM introduced a comprehensive regulatory framework specifically for stablecoins. These rules are enforced by the FSRA and focus on financial stability and consumer protection.

Under this framework, stablecoins must:

• Maintain full reserves backed by traditional currency
• Provide transparency around issuance and reserves
• Implement strong anti-money laundering controls

One notable feature is that ADGM allows yield-bearing stablecoins. This means issuers can share income generated from reserve assets with token holders, subject to regulatory conditions. This approach differs from some jurisdictions that prohibit yield entirely.

By November 2025, Accepted Fiat-Referenced Tokens included USDC from Circle and stablecoins issued by Paxos. USDT’s inclusion across multiple blockchains expanded that list significantly.

What This Approval Does and Does not Change

The AFRT recognition does not change how USDT works technically. It does not alter tokenomics, issuance mechanics, or network design. Instead, it clarifies how USDT on TRON can be used within a regulated financial environment.

It also does not grant blanket approval for all users. The designation applies to FSRA-licensed firms operating in ADGM. Retail users outside this framework are not directly affected by the regulatory classification.

However, regulatory clarity often influences market behavior indirectly. Firms prefer jurisdictions where rules are clear and stable, especially when dealing with large transaction volumes.

Conclusion

USDT on TRON’s recognition as an Accepted Fiat-Referenced Token in Abu Dhabi Global Market confirms that this stablecoin and network meet the FSRA’s regulatory standards. The approval allows licensed firms to use USDT on TRON for regulated financial activities such as payments, settlements, custody, and trading.

The decision reflects ADGM’s structured approach to digital assets, combining compliance requirements with support for multiple blockchain networks. It also highlights TRON’s role in the global stablecoin market and the importance of regulatory cooperation as stablecoins become embedded in formal financial systems.

Resources

1. Press release from Tron DAO: USDT on TRON Recognized as Accepted Fiat-Referenced Token in ADGM

2. Tron DAO on X: Announcements (December 2025)

3. ADGM Stablecoins rulebook: Framework on stabelcoins