Abu Dhabi In-Principle Approval Marks Key Step in Circle’s Global Expansion
Circle, the issuer of the USD-pegged stablecoin USDC, has secured in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) to operate as a licensed money services provider. The approval is a significant step in Circle’s efforts to expand its regulatory footprint across the Middle East and Africa.
The development follows Circle’s incorporation of a new legal entity within ADGM in December 2024, signaling its commitment to regional growth through a regulated presence in the UAE’s financial free zone.
UAE Embraces Blockchain and Stablecoin Innovation
“The UAE is paving the way for responsible innovators to build the internet financial system,” said Jeremy Allaire, Co-Founder and CEO of Circle. “This IPA from ADGM advances our strategy to establish deep roots in markets embracing the onchain economy, creating new pathways for investment and innovation in the region.”
Allaire added that the approval reinforces Circle’s dedication to global stablecoin oversight, aiming to strengthen trust, compliance, and adoption of digital assets worldwide.
What In-Principle Approval Means
An in-principle approval indicates that Circle has satisfied the initial regulatory requirements to operate within ADGM but still awaits final approval before full operations can begin. Historically, Circle received full authorization in Singapore approximately seven months after receiving a similar IPA for a Major Payments Institution License in November 2022.
USDC’s Growing Influence on Ethereum
Circle’s USDC stablecoin, pegged 1:1 to the U.S. dollar, currently accounts for over 31% of the total Ethereum stablecoin supply as of April 28. USDC continues to play a pivotal role in the growing stablecoin economy on Ethereum and other blockchains.
ADGM: A Rising Fintech Hub in the UAE
The Abu Dhabi Global Market is a specialized financial free zone in the capital of the United Arab Emirates, with an independent regulatory framework. The FSRA oversees financial entities operating within ADGM, offering a favorable environment for blockchain companies and Web3 innovators.
Circle Eyes Public Listing Amid Global Growth
Alongside its Middle East expansion, Circle recently filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission, signaling plans to become a publicly traded company.
