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The Central Bank of the United Arab Emirates (CBUAE) approved the country’s first US dollar-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 carried out by Universal Digital, which is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).
Reserves supporting USDU are held 1:1 in domestic secured accounts at Universal’s banking partners: Emirates NBD and Mashreq, with Mbank.
The regulatory move means that a dollar stablecoin is now live and operational under a central bank payments regime, putting the UAE ahead of the US, the EU and much of Asia, according to the statement.
“USDU sets a new benchmark for regulated digital security,” said Juha Viitala, senior managing director at Universal. “Being the first foreign payment token registered by the UAE Central Bank – and backed by leading UAE banks – provides institutions with the clarity and confidence they have been waiting for. It laid the foundation for a more transparent and efficient digital asset market in the UAE and beyond.”
Digital asset infrastructure company Aquanow has been appointed as a global distribution partner, supporting institutional access to USDU outside the UAE where permitted, Universal said.
“We see growing institutional interest in regulated digital security instruments, and Universal’s introduction of the USDU is a timely step that supports the maturation of this market,” said Joel Van Dusen, head of Mashreq’s corporate and investment banking group.
