UAE approves first USD-backed stablecoin, USDU

The UAE central bank has approved USDU, the first USD-backed stablecoin, under a new regulatory framework. Fully backed by reserves in UAE banks, USDU marks a major step in digital finance.

The Central Bank of the United Arab Emirates (CBUAE) has approved USDU, the country's first USD-backed stablecoin, under its Payment Token Services Regulation (PTSR). USDU is issued and managed by Universal Digital, regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). USDU’s reserves are held 1:1 in safeguarded onshore accounts at major UAE banks, including Emirates NBD, Mashreq, and Mbank, ensuring transparency and security. This regulatory milestone establishes a compliant framework for digital asset settlements in the UAE, positioning the country ahead of the US, EU, and much of Asia in stablecoin regulation. Aquanow has been appointed as a global distribution partner to facilitate institutional access to USDU outside the UAE where permitted. This approval marks a significant step in integrating traditional banking with blockchain technology and reinforces the UAE’s leadership in digital finance.