Dollar Stablecoin from the UAE

The United Arab Emirates has taken another strategic step toward the institutional crypto market. The Central Bank of the UAE (CBUAE) has officially approved the launch of the dollar stablecoin USDU, positioned as the first fully regulated digital asset pegged to the US dollar within the country’s jurisdiction.

The launch was announced by Universal Digital, a company registered with the Financial Services Regulatory Authority (FSRA). USDU became the first dollar stablecoin not only approved for circulation, but also integrated into the payment infrastructure of the central bank.

The company stated that it became the first foreign issuer of “payment tokens” to successfully complete registration with the Central Bank of the UAE under the Payment Token Services Regulation (PTSR).

This is a fundamentally important point. It is not a sandbox license or an experimental regime, but full recognition of the token as a payment instrument within the state financial system. In effect, USDU becomes part of the official payment framework of the UAE.

According to the official release, USDU is backed by the US dollar at a 1:1 ratio. The reserves are not held in offshore structures or abstract custodians, but in accounts at leading UAE banks: Emirates NBD, Mbank, and Mashreq.

The state of the reserves will be audited monthly by an international auditing firm. The auditor’s name has not yet been disclosed, but the very fact of regular audits underscores the institutional nature of the project.

This sharply distinguishes USDU from a significant portion of existing stablecoins, where transparency of reserves remains a chronic issue.

Universal Digital emphasized separately that the approval of USDU means not just the issuance of a token, but its full operation within the payment system of the Central Bank of the UAE.

In essence, this means:

• legal recognition of the stablecoin as a payment instrument;
• the ability to use it in settlements between companies and institutions;
• reduced regulatory risks for banks and corporate users.

According to the company, this move places the UAE at the forefront of global financial innovation, ahead not only of Europe but also the United States and a significant portion of Asian markets, where stablecoin regulation is either fragmented or still under discussion.

To scale the project, Universal Digital has entered into strategic partnerships with infrastructure provider Aquanow and the crypto project AECoin.

The goal is to ensure the integration of USDU into a broader digital asset ecosystem, including payments, liquidity, institutional services, and Web3 infrastructure.

This indicates that USDU is viewed not as a standalone product, but as a base settlement layer for future financial solutions in the region.

Universal Digital CEO Juha Viitala stated that the launch of USDU sets a new standard for regulated digital value: “USDU sets a new standard for regulated digital value. As the first payment token registered with the Central Bank of the UAE and supported by the country’s leading banks, it provides institutions with the clarity and confidence they have long awaited. It lays the foundation for a more transparent and efficient digital asset market in the UAE and beyond.”

• Issuer: Universal Digital Intl Limited
• Custody of reserves: Emirates NBD, Mbank, Mashreq
• Status: the first foreign stablecoin admitted for settlements under the current UAE regulatory framework

This makes USDU a unique precedent: a foreign company gains access to the national payment system of one of the world’s most progressive financial jurisdictions.

Against this backdrop, another important signal came from traditional finance. Dubai-based Dubai Insurance announced the launch of the first crypto digital wallet in the UAE insurance sector in partnership with Zodia Custody.

The wallet will be used for insurance payout operations, effectively marking the beginning of crypto infrastructure integration into insurance settlements – one of the most conservative areas of finance.

The UAE is consistently transforming into a jurisdiction where:

• stablecoins receive not declarative but institutional recognition;
• crypto assets are integrated into banking, payment, and insurance infrastructure;
• regulation does not slow the market, but creates conditions for its scaling.

USDU is not just “another dollar token”. It is a signal to the market of what the future of digital money may look like when issuance and circulation occur not in spite of regulators, but together with them.