Circle Internet Group has announced the approval of its FSP (Financial Services Permission) license from the ADGM’s FSRA (Financial Services Regulatory Authority). The FSP license allows Circle to expand its regulated payment and settlement use cases for UAE financial institutions, businesses, and developers.
Essentially, Circle has secured an FSP license from the FSRA of ADGM, which is the International Financial Centre (IFC) of Abu Dhabi. The FSRA license allows the company to operate as a Money Service Provider in the ADGM financial district.
The announcement builds on the company’s growing presence in the UAE, which includes the Dubai International Financial Center recognizing EURC and USDC as stablecoins under the Dubai Financial Services Authority (DFSA).
These developments will help Circle deliver on-chain digital dollars in the UAE. The developments also reflect the company’s continued progress in expanding blockchain utility globally for businesses.
Meanwhile, Circle’s stock (CRCL) dropped 2% to $83.96 and even further in after-hours trading despite the positive regulatory news. The decline reportedly suggests profit-taking after the shares rose nearly 10% last week. However, the stock is still down roughly 22% YTD.
However, Jeremy Allaire, Circle’s co-founder and CEO, believes securing the ADGM FSRA license sets up the stage for USDC to support FX, as well as real-world payments and settlements. He also believes that more social use cases for USDC tokens will be developed in the region as Circle’s expansion progresses.
Allaire says FSRA framework sets high bar for consumer protection
The Circle boss said the FSRA’s framework sets a high bar for risk management, transparency, and consumer protection. He pointed out that these standards enable trusted stablecoins to support real-world payments at internet scale, adding that regulatory clarity is the foundation of a more open and efficient online financial system.
ADGM’s Chief Marketing Development Officer, Arvind Ramamurthy, also emphasized that having clear rules for fiat-pegged tokens in the UAE enables the safe and scalable adoption of crypto across the financial system.
Ramamurthy added that ADGM’s primary goal is to build an internet-based financial system that supports real-world use cases, enhancing market confidence and solidifying the UAE’s role as a hub for the region’s regulated digital financial services.
Meanwhile, Dr. Saeeda Jaffar has also joined the company as the new Director for Circle Middle East & Africa, according to CEO Allaire. Jaffar is joining Circle from Visa, where she was the Senior Vice President and Group Country Manager for the Gulf Cooperation Council (GCC).
The company’s appointment of Jaffar is part of its ongoing effort to lay the groundwork for a more open global economy through digital assets and strategic appointments. Meanwhile, it will also continue to push the bar higher for payment applications and programmable blockchain infrastructure.
ADGM approves Tether and Binance
The ADGM has also recognized Tether’s USDT as an approved token within its financial district a day earlier, allowing licensed companies to use the stablecoin across TON, Aptos, TRON, and Cosmos.
Binance also announced on the same day plans to operate its fully authorized Binance.com exchange under the ADGM framework. Binance will be operating a clearance house, an exchange, and a broker-dealer starting early next year.
Meanwhile, Circle previously collaborated with Abu Dhabi’s Hub71 to explore initiatives around ADGM’s digital regulatory sandbox. The company will also join Hub71’s Digital Assets ecosystem, a community of over 500 venture capital partners and tech startups.
Ahmad Alwan, Hub71’s CEO, said collaborating with crypto companies will provide Hub71 founders with access to mentorship, resources, and opportunities for growth. He added that both Circle and Hub71 aim to enable the adoption of Web3 and digital finance in Abu Dhabi.
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