The Central Bank of the United Arab Emirates (CBUAE) has approved the launch of USDU, the nation's first U.S. dollar-backed stablecoin sanctioned under its regulatory framework. The token, issued and managed by Universal Digital International Limited, is registered under the UAE's Payment Token Services Regulation (PTSR), marking a significant milestone in the country's push to build regulated digital-asset infrastructure.
Universal Digital announced it has become the "first Foreign Payment Token Issuer registered by the Central Bank of the UAE." The company's senior executive officer, Juha Viitala, stated that "USDU sets a new benchmark for regulated digital value" and provides institutions with the clarity and confidence needed for digital asset settlement. UAE regulations require digital-asset and derivatives transactions to be settled in fiat or via a Registered Foreign Payment Token like USDU.
The stablecoin is backed 1:1 by U.S. dollar reserves held in safeguarded accounts at UAE banking partners Emirates NBD, Mashreq, and Mbank. To facilitate broader adoption, Universal has partnered with digital asset infrastructure firm Aquanow, which is regulated by Dubai's Virtual Assets Regulatory Authority (VARA). This partnership aims to integrate USDU into the wider digital-asset ecosystem through Aquanow's network.
This development positions the UAE ahead of major economies like the U.S. and the EU in operationalizing a central bank-sanctioned USD stablecoin. In a related move, Circle, the issuer of the world's second-largest stablecoin USDC, secured a financial services permission license from the Abu Dhabi Global Market in December 2025. Circle plans to expand its regulated payment and settlement services in the UAE, aiming to drive adoption of dollar stablecoins and onchain payment infrastructure across the region.
