UAE Approves First Central Bank-Registered USD Stablecoin USDU

UAE Approves First Central Bank-Registered USD Stablecoin USDU

Universal Digital Intl Limited (Universal) has launched USDU, the first USD-backed stablecoin to be registered by the Central Bank of the UAE (CBUAE) under its Payment Token Services Regulation (PTSR).

The transfer positions Universal as the first “Foreign Payment Token Issuer” registered by the CBUAE. The launch is important because it establishes the nation’s first absolutely regulated framework for USD-denominated digital asset settlement, a important element for the maturation of the area’s crypto financial system.

A compliant pathway for settlement

Juha Viitala, senior government officer at Universal

Under the UAE’s PTSR framework, funds for digital property and derivatives can only be compliant if performed in fiat forex or a “Registered Foreign Payment Token.” As USDU is at the moment the only token to carry this standing, it successfully turns into the major compliant settlement possibility for the market.

“USDU sets a new benchmark for regulated digital value,” said Juha Viitala, search engine optimisation of Universal. “Being the first Foreign Payment Token registered by the UAE Central Bank – and supported by leading UAE banks – gives institutions the clarity and confidence they have been waiting for.”

Institutional backing

The stablecoin is backed by reserves held 1:1 in safeguarded onshore accounts at major UAE monetary establishments, particularly Emirates NBD and Mashreq, with Mbank performing as a strategic company banking companion. Universal has said that these reserves can be independently attested month-to-month by a global accounting agency to make sure transparency.

Anith Daniel, group head of transaction banking providers at Emirates NBD, commented: “We continue to support solutions that bolster the nation’s rapidly developing, well-regulated digital-asset infrastructure in line with our vision to be a digital leader in the region.”

Joel Van Dusen, group head of company and funding banking at Mashreq, added that the launch is a “timely step that supports this market’s maturation”.

Global distribution

To facilitate adoption, Universal has appointed Aquanow as its global distribution companion. Aquanow, which is regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), will assist institutional entry to USDU across a number of markets.

Furthermore, Universal revealed plans for future interoperability with AECoin, the first licensed AED stablecoin, to allow conversion for home settlement wants.

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