A new chapter in the UAE’s regulated digital-asset market has begun with the launch of USDU, a U.S. dollar–backed stablecoin approved under the country’s central bank framework. The initiative is positioned as a major step toward compliant onchain settlement and institutional adoption of digital assets in the region.
A regulated stablecoin enters the UAE market
Universal Digital Intl Limited announced the launch of USDU, describing it as the only U.S. dollar stablecoin currently registered and permitted for compliant digital-asset settlement in the United Arab Emirates. According to the company, it is the first Foreign Payment Token Issuer officially registered with the Central Bank of the UAE.
USDU is registered under the UAE’s Payment Token Services Regulation, making it the first token of its kind to operate within this regulatory framework. This status allows USDU to be used for settlement in digital-asset and derivatives transactions that, under UAE rules, must be settled either in fiat currency or via an approved foreign payment token.
USDU’s role in digital-asset settlement
Universal Digital says USDU is designed to serve as a compliant, U.S. dollar–denominated settlement token for institutions operating in the UAE. The company views the launch as a milestone in the country’s broader strategy to build regulated digital-asset infrastructure and attract institutional participants to the market.
Juha Viitala, Senior Executive Officer at Universal Digital, said the registration provides long-awaited regulatory clarity for institutions exploring digital assets. He added that the approval lays the foundation for a more transparent and efficient digital-asset market in the UAE, with potential implications beyond the region.
1:1 dollar backing and banking partners
USDU is backed on a one-to-one basis with U.S. dollar reserves held at established financial institutions. Universal Digital stated that these reserves are maintained with banks including Emirates NBD, Mbank, and Mashreq.
The issuer says this structure is intended to support transparency, stability, and trust, key factors for institutional use of stablecoins in regulated environments.
Integration with the UAE digital-asset ecosystem
To support adoption, Universal Digital has partnered with Aquanow, a firm regulated under Dubai’s Virtual Assets Regulatory Authority. The collaboration aims to integrate USDU into the wider digital-asset ecosystem by leveraging Aquanow’s network of regulated service providers.
The goal is to make USDU accessible across compliant platforms and services, strengthening its role in onchain payments and settlement within the UAE.
Circle’s parallel expansion in the UAE
The launch of USDU comes as other major stablecoin issuers expand their presence in the region. In December, Circle, the issuer of USDC, secured a financial services permission from the Abu Dhabi Global Market Financial Services Regulatory Authority.
This license allows Circle to operate as a money services provider and expand regulated payment and settlement services in the UAE. The company has stated that its strategy includes driving adoption of dollar-backed stablecoins and onchain payment infrastructure across the UAE and the wider Middle East and Africa region.
USDC currently ranks as the world’s second-largest stablecoin by market capitalization, underscoring growing competition and regulatory momentum in the global stablecoin market.
Why this matters for the UAE
With USDU’s launch, the UAE strengthens its position as a hub for regulated digital finance. Central bank–sanctioned stablecoins, clear settlement rules, and growing institutional interest signal a shift toward compliant onchain finance, where stablecoins play a central role in payments, trading, and cross-border settlement.
For institutions and developers operating in the UAE, the arrival of a locally approved U.S. dollar stablecoin may reduce regulatory uncertainty and accelerate adoption of digital-asset solutions within a clearly defined legal framework.
