Yeliz Akmaca 
The Central Bank of the United Arab Emirates has approved USDU, the country’s first US dollar–backed stablecoin. The token is issued by Universal Digital and supervised by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market.
What truly sets USDU apart from other digital assets is its fully secured reserve structure. The US dollar reserves backing the token are held on a 1:1 basis at some of the region’s most established banks, including Emirates NBD, Mashreq, and Mbank. As a result, investors can be confident that every USDU token is backed by real US dollars. This positions USDU not merely as another token, but as a new benchmark for regulated digital money in the UAE.
Institutional Access and Global Distribution
Digital asset infrastructure firm Aquanow has been appointed as the global distribution partner to support access to USDU for institutional investors outside the UAE. Commenting on the development, Universal Digital senior executive Juha Viitala said, “USDU sets a new standard for regulated digital value. Approval from the UAE Central Bank and backing from leading banks provide the level of trust institutional investors expect.”
This strategic move signals the UAE’s intention to position its digital dollar not only within its domestic market, but also as a standard for international trade and cross-border financial activity.
Circle and Stablecoin Adoption in the UAE
In December, Circle obtained a financial services license from Abu Dhabi Global Market for its USDC stablecoin. The company plans to expand regulated payment and settlement services for businesses, financial institutions, and developers across the UAE and the wider Middle East and Africa region.
Together, the USDU and USDC initiatives are accelerating the adoption of US dollar–based stablecoins and on-chain payment infrastructure both in the UAE and regionally. These developments strengthen investor confidence while expanding institutional use cases.
Experts note that with this regulatory push, the UAE is positioning itself as a leader in central bank–aligned stablecoins, setting an example for other countries in the Middle East. Moreover, USDU’s transparent reserve management and global distribution partnerships ensure strong alignment with the traditional financial system, reinforcing its credibility and security.
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