UAE's first USD stablecoin launched, USDU facilitates compliant digital asset settlement
January 29 News, Universal Digital Intl Limited announced the launch of the first USD stablecoin approved by the Central Bank of the UAE, USDU. This move makes the company the first foreign payment token issuer registered in the UAE, as well as the first of its kind registered under the UAE Payment Token Service Regulations (PTSR).
Universal stated that the launch of USDU marks an important milestone in the UAE’s development of regulated digital asset infrastructure. As a USD-pegged settlement token, USDU can be used for compliant interbank payments and digital asset settlements, meeting the UAE’s requirements that digital asset and derivative transactions must be settled in fiat currency or registered foreign payment tokens. Juha Viitala, Senior Executive at Universal, emphasized that USDU sets a new compliance standard for digital value, providing institutional users with a clear legal framework and confidence.
USDU is backed 1:1 by USD reserves held by Emirates NBD, Mbank, and Mashreq. Additionally, Universal has partnered with Aquanow, a regulated service provider under the Dubai Virtual Asset Regulatory Authority (VARA), to promote the application of USDU within a broader digital asset ecosystem through its regulated service provider network.
This development aligns with plans by stablecoin issuer Circle in the UAE. In December last year, Circle received a license from the Abu Dhabi Global Market Financial Services Regulatory Authority to operate as a money services business, with plans to promote USD stablecoins and on-chain payment infrastructure services in the UAE, Middle East, and Africa. USDC, the second-largest stablecoin by market cap globally, will work alongside USDU to facilitate compliant digital payments for enterprises, developers, and financial institutions.
Overall, the launch of USDU not only provides a safe and efficient USD settlement option for the UAE but also further promotes the development of the regulated digital asset market. This means that businesses and financial institutions in the Middle East can more conveniently use USD stablecoins for cross-border payments and on-chain settlements within a compliant framework, supporting the steady growth of the digital economy.
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