The Central Bank of the United Arab Emirates has approved the country’s first USD-backed stablecoin under its official Payment Token Services Regulation. The stablecoin, called USDU, is issued and managed by Universal Digital.
USDU is fully backed on a one-to-one basis with U.S. dollars held in safeguarded onshore accounts at major UAE banks, including Emirates NBD and Mashreq. The token is regulated under Abu Dhabi Global Market’s financial authority.
This approval makes the UAE one of the first major jurisdictions to allow a USD stablecoin under a central bank payments framework. Officials say this places the country ahead of the U.S., Europe, and much of Asia in regulated digital payments.
Universal said USDU offers institutions clarity and confidence by combining strong regulation with banking support. Digital asset firm Aquanow has been appointed as a global distribution partner, helping expand access where permitted.
Industry executives believe regulated stablecoins like USDU will support more transparent, efficient digital asset markets and boost institutional adoption.
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