EMBARGOED UNTIL JANUARY 29, 10AM GST
The Central Bank of the United Arab Emirates (CBUAE) has approved the country’s first dollar-backed stablecoin under the bank’s Payment Token Services Regulation (PTSR), according to a press release issued on Thursday.
The issuance and management of the USDU token is managed by Universal Digital, which is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).
The reserves supporting USDU are held 1:1 in secure onshore accounts at Universal’s banking partners: Emirates NBD and Mashreq, with Mbank.
This regulatory move means that a USD stablecoin is now up and running as part of a central bank payments regime, putting the UAE ahead of the US, EU and much of Asia, the statement said.
“USDU sets a new benchmark for regulated digital value,” said Juha Viitala, CEO of Universal. “Being the first foreign payment token registered by the UAE Central Bank – and backed by major UAE banks – gives institutions the clarity and confidence they have been waiting for. This lays the foundation for a more transparent and efficient digital assets market in the UAE and beyond.”
Digital asset infrastructure company Aquanow has been named a global distribution partner, supporting institutional access to USDU outside of 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, Head of Corporate and Investment Banking Group, Mashreq.
