UAE Central Bank Registers First Approved US Dollar Stablecoin

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Universal Digital Intl Limited has launched what it identifies as the first US dollar stablecoin sanctioned by the United Arab Emirates. The company announced the introduction of USDU on Thursday, marking its registration as the first Foreign Payment Token Issuer by the Central Bank of the UAE.

The USDU stablecoin is the inaugural token registered under the UAE’s Payment Token Services Regulation (PTSR). Universal positions this launch as a significant step in the UAE’s effort to build a regulated digital-asset infrastructure, providing a compliant, dollar-denominated settlement option.

According to the firm, UAE regulations mandate that digital-asset and derivatives transactions be settled either in fiat currency or through a Registered Foreign Payment Token like USDU. Universal’s Senior Executive Officer, Juha Viitala, stated that this registration provides institutions with needed clarity and confidence, setting a foundation for a more transparent market.

The company further clarified that the USDU stablecoin is fully backed 1:1 by US dollar reserves. These reserves are held at financial institutions within the UAE, including Emirates NBD, Mbank, and Mashreq.