On Thursday, the Central Bank of the United Arab Emirates (CBUAE) approved Universal Digital International Limited’s USDU stablecoin under the central bank’s Payment Token Services Regulation (PTSR).
Universal, a company regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), says USDU is the only stablecoin that is currently registered and permitted for compliant digital-asset settlement in the country.
With the launch of USDU, Universal Digital International has become the first Foreign Payment Token issuer under the CBUAE’s regulatory regime. The stablecoin is backed 1:1 with U.S. dollar reserves safeguarded by the issuer’s banking partners: Emirates NBD, Mashreq, and MBank, which serves as a strategic corporate banking partner.
USDU Becomes First Foreign Payment Token Registered by the UAE’s Central Bank
“USDU sets a new benchmark for regulated digital value. Being the first Foreign Payment Token registered by the UAE Central Bank – and supported by leading UAE banks – gives institutions the clarity and confidence they have been waiting for. It lays the groundwork for a more transparent and efficient digital-asset market in the UAE and beyond,” said Juhu Viitala, senior executive officer at Universal.
The company hopes that the stablecoin’s launch will be a milestone in the UAE’s push to develop regulated digital-asset infrastructure, with USDU emerging as a compliant, USD-denominated settlement token. Under the PTSR regime, payments for digital assets and digital-asset derivatives in the country are to be settled in fiat or via a Registered Foreign Payment Token.
Currently, USDU is the only token registered under the framework, making its availability essential for compliant operations in the UAE digital-asset market – a structure many global markets are still in the process of defining.
Universal has tapped Canadian digital assets infrastructure provider Aquanow to act as a global distribution partner for USDU. The firm regulated under Dubai’s Virtual Assets Regulatory Authority (VARA) will support institutional access to the stablecoin outside the UAE through its network of complaint service providers.
“We see growing institutional interest in regulated digital-value instruments, and Universal’s introduction of USDU is a timely step that supports this market’s maturation,” said Joel Van Dusen, Group Head of Corporate and Investment Banking at Mashreq.
USDU reserves are independently audited each month by a global accounting firm, with its transparency levels mirroring emerging global standards seen in the U.S., E.U., and Japan.
Universal is also working with AE Coin, the UAE’s first licensed dirham-denominated (AED) stablecoin, to enable future conversions between USDU and AE Coin. This partnership aims to align USD and AED payment tokens within the same regulatory parameters, supporting domestic settlement use cases. The integration is designed to facilitate seamless, compliant cross-currency transactions for institutional participants in the country.
CBUAE Greenlights Dirham-Backed Stablecoins from RAKBank and Zand
Earlier this month, RAKBank received an in-principle approval from the CBUAE to issue an AED-pegged stablecoin. The stablecoin is expected to be fully-backed by the dirham, with its assets held in segregated, regulated accounts to support full redemption at par value by users.
Last year, the bank enabled its retail customers to trade cryptocurrencies through a regulated brokerage partner, providing a compliant and secure pathway for customers to access the digital asset market.
In November, the central bank greenlighted Zand, the UAE’s first digital bank, to launch Zand AED – the country’s first regulated, multi-chain AED-backed stablecoin. The token is issued by Zand Trust, a wholly owned subsidiary of the bank, licensed and supervised by the CBUAE.
USDC and RLUSD are now Accepted Fiat-Referenced Tokens within Abu Dhabi Global Markets
Last month, USDC issuer Circle secured a financial services permission license from the Abu Dhabi Global Market’s Financial Services Regulatory Authority, allowing the firm to operate as a money services provider.
Circle plans to expand regulated payment and settlement services in the UAE for businesses, developers, and financial institutions. Its strategy also includes driving the adoption of dollar stablecoins and on-chain payment infrastructure across the country and the MENA region.
Ripple’s RLUSD also received a similar approval from the FSRA, recognizing the stablecoin as an Accepted Fiat-Referenced Token in the Emirates. This regulatory greenlight allows licensed institutions operating within ADGM to use RLUSD for regulated financial activities, including payments, collateral, lending, custody, and prime brokerage services.
The move also opens the door for broader adoption of the token across the Middle East, with Ripple already announcing partnerships with fintech firms in Bahrain and Africa to expand its use cases in cross-border payments and financial infrastructure.
