Institutional Crypto Adoption Accelerates as UAE Approves Stablecoins and French Bank Launches Trading

UAE Regulatory Framework Expands for Major Stablecoins

Abu Dhabi Global Market (ADGM) has granted regulatory approval for Tether's USDT stablecoin, enabling institutional use across nine major blockchain networks. The move reinforces the emirate's ambition to establish itself as a leading global hub for compliant digital finance.

Tether's USDT maintains dominant market position with a capitalization exceeding $185.737 billion, accounting for approximately 60.12% of the stablecoin market ^[1]. The broader stablecoin sector has experienced significant growth in 2025, with collective market capitalization surpassing $300 billion for the first time in history ^[1].

"Introducing USDT within ADGM's regulated digital asset framework reinforces the role of stablecoins as essential components of today's financial landscape," said Tether CEO Paolo Ardoino ^[1]. "By extending recognition to USDT on several major blockchains, ADGM further strengthens Abu Dhabi's position as a global hub for compliant digital finance."

The regulatory momentum in the stablecoin sector has been largely attributed to friendlier policies in the United States, particularly the July signing of the GENIUS Act into law by President Donald Trump, which provided regulatory clarity and sparked a wave of stablecoin initiatives ^[1].

Abu Dhabi's Broader Digital Asset Strategy

Tether's approval follows similar regulatory recognition for Ripple's RLUSD dollar-pegged stablecoin as an accepted fiat-referenced token, clearing the path for institutional adoption ^[1]. Additionally, a consortium including Abu Dhabi's sovereign wealth fund ADQ, International Holding Company, and First Abu Dhabi Bank has announced plans for a dirham-pegged stablecoin, pending approval from the UAE Central Bank ^[1].

The emirate's crypto-friendly approach extends beyond stablecoins. Binance, the world's largest cryptocurrency exchange by 24-hour trading volumes, recently secured full authorization to operate its global platform within the ADGM framework ^[1]. "ADGM is one of the most respected financial regulators globally, and holding an FSRA license under their gold standard framework shows that Binance meets the highest international standards for compliance, governance, risk management, and consumer protection," said Binance Co-CEO Richard Teng ^[1].

European Banking Giant Enters Crypto Trading Market

In a parallel development signaling institutional adoption in Europe, French banking giant BPCE has launched cryptocurrency trading services for its two million users ^[1]. The bank now offers trading in Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and USD Coin (USDC) directly within customer banking accounts.

This integration marks a significant milestone in bridging traditional banking and cryptocurrency markets, making digital asset trading more accessible to mainstream users. The move by a major European financial institution could accelerate demand and acceptance of cryptocurrencies across retail banking customers ^[1].

Saylor Proposes Bitcoin-Backed Banking Products

Meanwhile, Strategy Executive Chairman Michael Saylor has proposed a Bitcoin-backed digital banking system that could potentially attract between $20 trillion and $50 trillion in capital flows ^[2]. Speaking at the Bitcoin MENA event in Abu Dhabi, Saylor outlined a structure using overcollateralized BTC reserves and tokenized credit instruments to create regulated digital bank accounts offering higher yields than traditional deposits.

Saylor noted that bank deposits in Japan, Switzerland, and Europe offer minimal yields, while US money-market rates approach 400 basis points ^[2]. His proposed model would combine digital credit instruments (80%), fiat currency, and a 10% reserve buffer to reduce volatility ^[2].

Strategy continues to expand its Bitcoin holdings, purchasing 10,624 BTC for approximately $962.7 million last week, bringing the company's total reserves to 660,624 BTC ^[2]. The firm remains the largest corporate Bitcoin holder globally since beginning its digital asset treasury strategy in 2020 ^[2].