Three Titans Jointly Bet, Abu Dhabi Becomes "Crypto Capital"

Original Article Title: "Tether, Binance, Circle Join Forces, Abu Dhabi Becomes Global 'Crypto Heart'"

Original Article Author: Conflux, PANews

If Dubai is the "Las Vegas" of the crypto world — lively, marketing-driven, and retail-focused, then Abu Dhabi is quietly becoming the "Wall Street" — capital, compliance, institutions.

Recently, a uniform phenomenon occurred in the global crypto market: top stablecoin issuers and major exchanges all coincidentally obtained the same "passport."

December 9

· Compliance-focused stablecoin giant Circle secured an ADGM Financial Services License (FSP).

December 8

· The stablecoin leader Tether's issued USDT received ADGM recognition.

· Top exchange Binance announced receiving a full ADGM license and will launch a new "three-entity" compliance framework by 2026.

This is no coincidence. When trillion-dollar players collectively choose to "settle down," it signifies that crypto regulation in the Middle East has evolved from a "tax haven" to a global institutional fund's "compliant settlement layer."

USDT Finally Gets Its "Identity"

For a long time, despite being the market leader, USDT has been criticized by European and American regulators for its "lack of transparency." But in Abu Dhabi, it has obtained a highly prestigious identity — the "Accepted Fiat Reference Token (AFRT)."

This is not just a simple license; it is a "multi-chain passport."

ADGM explicitly recognized USDT's regulated status on 9 mainstream blockchains, including Aptos, TON, Solana, Near, etc. This means that banks, funds, and institutions in the ADGM jurisdiction can legally and compliantly settle transactions using on-chain USDT without worrying about legal risks. For the Web3 industry eager to introduce traditional funds, this is a crucial step in bridging the "fiat-cryptocurrency" main artery.

Closely following, Circle also didn't back down, not only acquiring a license but also directly appointing a former Visa executive to lead its Middle East operations, intending to leverage Abu Dhabi's financial hub status to seize a share of the digital settlement of petrodollars.

Binance's "Asset-into-Entity" Strategy

It is reported that Binance has successfully obtained three separate licenses, corresponding to trading, clearing custody, and OTC services. Starting from 2026, its local operations will be run by three independent entities:

· Nest Exchange Services Limited: Responsible for operating platforms such as spot and derivatives trading;

· Nest Clearing and Custody Limited: Responsible for clearing and custody, acting as the central counterparty for derivative trading;

· Nest Trading Limited: Providing OTC trading, instant swaps, and some wealth management services.

Some have described this as a "regulatory split," but considering the context, it appears more like an "empowerment through top-tier structuring."

Abu Dhabi learned from the FTX incident and mandated "functional separation." This not only gave Binance a compliance structure equivalent to that of Nasdaq but also gained endorsement from the "national team." Earlier this year, the investment firm MGX, established with the participation of Abu Dhabi's sovereign wealth fund Mubadala, had already invested in Binance.

With these three licenses, Binance has effectively established a full-fledged, fully compliant financial infrastructure in Abu Dhabi.

Why Abu Dhabi?

Why have giants chosen Abu Dhabi?

The answer lies in the top-level design of the "dual-track system."

The UAE has a unique "federal-free zone" dual-track regulation. The Abu Dhabi Global Market (ADGM) is a distinct "independent common law jurisdiction." It is located in the UAE but directly applies the internationally recognized UK common law system, with independent courts and legislative powers.

Here, giants can enjoy a perfect balance:

· More efficient certainty than the US: While US regulations are becoming more crypto-friendly, the legislative process still takes time. ADGM has already established a mature, clear, and "plug-and-play" regulatory standard, allowing companies to avoid waiting in the regulatory tussle between multiple agencies like the SEC and CFTC.

· Stricter positioning compared to Dubai: The Dubai Virtual Asset Regulatory Authority (VARA) focuses on retail and marketing, while ADGM is positioned against London and New York, specializing in institutional custody, RWA, and cross-border settlements.

· Also a top-tier player in capital: Don't forget, the UAE government itself is a strategic holder of crypto assets (through entities like Citadel Mining), and its sovereign fund MGX has directly invested in Binance.

Not just a regulator, but a partner. This is Abu Dhabi's ultimate allure to giants.

Even more shocking is its expansion determination. According to the latest Bloomberg report, due to the arrival of too many financial institutions, space is running out, and Abu Dhabi is planning to invest $16 billion crazily expanding the financial district. This kind of aggressive "build when space is lacking" attitude is a reflection of its will to create a global financial hub.

Global Compliance "Capital"

While the U.S. is still debating "who regulates what" and Europe's MiCA is still in a trial period, Abu Dhabi has quietly completed the puzzle of infrastructure: by introducing the world's largest stablecoin issuer and trading platform, it has gradually built a complete, institution-grade digital financial operating system.

This is not just a regional victory; it is a microcosm of the global shift of the crypto financial center to the East. For practitioners, if the opportunities of the past five years were in the code of Silicon Valley, then perhaps the opportunities of the next five years will be in Abu Dhabi's office buildings.