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The Central Bank of the United Arab Emirates (CBUAE) has approved the country’s first USD-backed stablecoin under the bank’s Payment Token Services Regulation (PTSR), according to a press release on Thursday.
The issuance and management of the USDU token is handled by Universal Digital, which is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).
Reserves backing the USDU are held 1:1 in secured onshore accounts with Universal’s banking partners: Emirates NBD and Mashreq, with Mbank.
The regulatory move means a USD stablecoin is now live and operational under a central bank payments regime, putting the UAE ahead of the US, EU and much of Asia, the release said.
“USDU sets a new benchmark for regulated digital value,” said Juha Viitala, senior executive officer of Universal. “Being the first foreign payment token registered by the UAE Central Bank – and backed by leading UAE banks – gives institutions the clarity and confidence they have been waiting for. It lays the foundations for a more transparent and efficient market for digital assets in the UAE and beyond.”
Digital asset infrastructure firm Aquanow has been appointed as a global distribution partner supporting institutional access to USDU outside the UAE where permitted, Universal said.
“We are seeing growing institutional interest in regulated digital value instruments, and Universal’s introduction of USDU is a timely step that supports the maturation of this market,” said Joel Van Dusen, Group Head of Corporate and Investment Banking, Mashrek.
