UAE Central Bank Approves USDU, Launching Nation’s First Regulated USD Stablecoin

The United Arab Emirates has cemented its position as a pioneer in regulated digital finance with the central bank's approval of USDU, the country's first US dollar-backed stablecoin. This landmark decision, granted under the Payment Token Services Regulation, marks the formal integration of a dollar-denominated stablecoin into a central bank-led payments framework.

The MOVE positions the UAE among the first major financial jurisdictions to directly regulate a USD stablecoin within its national infrastructure, accelerating its ambition to become a global hub for compliant digital assets. Universal Digital, the ADGM-regulated issuer behind USDU, now operates under a dual oversight regime with stringent requirements for governance, disclosures, and reserve management.

USDU's 1:1 dollar backing and institutional-grade regulatory clarity could catalyze adoption for settlement, trading, and treasury operations across the Middle East's financial ecosystem.