UAE Central Bank Greenlights USD-Backed Stablecoin USDU

The Central Bank of the UAE (CBUAE) has granted official approval for the launch of the nation’s first USD-pegged stablecoin, USDU. This landmark decision marks a turning point for regulated crypto assets in the Middle East. Moreover, it reflects a broader global transition toward digital currencies that blend traditional finance with blockchain innovation.

A New Chapter in the UAE’s Digital Finance Strategy

USDU maintains a strict 1:1 backing with US dollars, with its reserves held in liquid accounts at reputable banks in the UAE. These funds are independently verified and redeemable, assuring users that each token is backed by real dollars, not speculative assets.

Universal Digital, regulated by the Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA), will issue and operate USDU. The company will operate under the UAE Central Bank’s Payment Token Services Regulation (PTSR). This regulatory clarity creates an inviting environment for institutional participants and progressive financial services alike. 

Additionally, Universal will collaborate with Aquanow, a global infrastructure provider, to enhance liquidity access and trading infrastructure for investors. Speaking on this partnership, Phil Sham, Aquanow’s CEO stated: 

”Universal’s introduction of USDU underscores the continued maturation of regulated digital settlement assets. Aquanow’s platform is built to support this evolution by providing institutions with secure, compliant market access, and we are pleased to support the distribution of USDU.”

Furthermore, the UAE embraces USDU as part of a broader strategy to cement its status as a digital finance hub. In recent years, the country has developed detailed rulebooks and innovation zones to attract blockchain developers and global investors. By integrating regulated stablecoins into its financial system, the UAE signals its ambition to lead the next wave of financial technology.

Global Stablecoin Momentum

As the UAE carves out its own stablecoin landscape, the market evolves as major players expand and adapt to regulation. Recently, Tether launched USA₮, a federally regulated, dollar-backed stablecoin designed to operate across the United States under new federal rules. 

Similarly, Fidelity Investments is set to launch its first stablecoin, the Fidelity Digital Dollar (FIDD), in early February. FIDD will be redeemable at $1 and backed by cash, equivalents, and short-term U.S. Treasuries under federal stablecoin rules.

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