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Universal Digital International Limited has launched USDU, the first U.S. dollar–backed stablecoin registered under the UAE Central Bank. The move marks a milestone in the UAE’s efforts to develop regulated digital-asset infrastructure.
Compliance and Regulatory Approval
USDU is the first token issued by a Foreign Payment Token Issuer registered with the UAE Central Bank under the Payment Token Services Regulation (PTSR). This approval ensures that USDU can be used for compliant digital-asset and derivatives settlement within the UAE.
Backing and Partnerships
The stablecoin is backed 1:1 by U.S. dollar reserves held at Emirates NBD, Mbank, and Mashreq. Universal Digital has also partnered with Aquanow, regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), to integrate USDU into the broader digital-asset ecosystem.
Boosting Digital-Asset Adoption
According to Universal, USDU provides institutions with clarity and confidence in using stablecoins for digital transactions. The launch supports transparent and efficient markets while enabling compliant on-chain payment solutions across the UAE and beyond.
Context: Circle and USDC in UAE
Previously, Circle, issuer of USDC, obtained a license from the Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate as a money services provider. Both initiatives aim to expand regulated stablecoin adoption and digital payment infrastructure in the Middle East.
