The Central Bank of the United Arab Emirates (CBUAE) has authorized the country’s first U.S. dollar-backed stablecoin, marking a significant step in the regulation of digital assets and payment tokens in the UAE.
The stablecoin, named USDU, has been approved under the CBUAE’s Payment Token Services Regulation. It is issued and managed by Universal Digital, a crypto firm regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market. The company becomes the first foreign payment token issuer registered with the UAE central bank.
This approval positions the UAE among the first major financial hubs to implement a fully regulated framework for USD-denominated settlements using digital assets. Universal Digital described the USDU launch as a key milestone in building regulated digital asset infrastructure in the country.
Stablecoins are cryptocurrencies designed to maintain a stable value by pegging them to reserve assets, usually fiat currencies like the U.S. dollar. Unlike more volatile cryptocurrencies, stablecoins aim to minimize price fluctuations, making them suitable for payments, settlements, and cross-border transfers, while operating on blockchain networks.
