The United Arab Emirates has taken a decisive step toward regulated digital finance with the launch of its first officially approved USD-backed stablecoin for digital-asset settlement.

Key Takeaways

• The UAE has approved its first USD-backed stablecoin for regulated digital-asset settlement

• USDU is currently the only Foreign Payment Token registered under the new rules

• The move strengthens the UAE’s push to lead in regulated digital finance 

Universal Digital Intl Limited has become the first Foreign Payment Token Issuer registered by the Central Bank of the UAE, marking a milestone in the country’s evolving digital-asset framework. Alongside the registration, the company introduced USDU, the first USD-denominated stablecoin approved under the UAE’s Payment Token Services Regulation.

The move establishes a clear and compliant settlement instrument for digital assets and derivatives in the UAE, where regulations now require transactions to be conducted either in fiat currency or through a registered foreign payment token.

Closing a Critical Gap in Digital-Asset Settlement

Until now, the UAE’s digital-asset market lacked a compliant USD settlement option. With USDU currently the only stablecoin registered under the new framework, it effectively creates the country’s first regulated pathway for dollar-based digital-asset settlement – an area many global jurisdictions are still working to define.

Universal is regulated by the Financial Services Regulatory Authority of Abu Dhabi Global Market, placing the token within one of the region’s most established financial oversight regimes.

Institutional Banking Support Anchors USDU

The launch is backed by major UAE banks, including Emirates NBD and Mashreq, where USDU’s reserves are held onshore on a fully backed basis. The reserves are maintained at a 1:1 ratio and are independently attested on a monthly basis, reinforcing the token’s institutional-grade structure.

This banking support signals growing confidence among traditional financial institutions as regulated digital-value instruments begin to integrate into the UAE’s financial system.

Built for Regulated Market Adoption

Universal’s rollout strategy also includes collaboration with regulated infrastructure providers to support compliant distribution and integration across the UAE’s digital-asset ecosystem. The company has indicated that USDU is designed not only for domestic settlement but also for use in cross-border digital-asset activity where local regulations allow.

In addition, Universal is working with local partners to support future interoperability between USD-denominated and dirham-based digital settlement instruments, aligning with the UAE’s broader push toward regulated digital payments.

UAE Strengthens Its Position in Digital Finance

The approval of USDU reinforces the UAE’s ambition to position itself as a global hub for regulated digital finance. By combining clear regulatory requirements, central bank oversight, and strong banking participation, the country is establishing one of the world’s most structured models for compliant USD-backed digital settlement.

As other major economies continue to debate stablecoin frameworks, the UAE is moving from policy design to real-world implementation – setting a precedent for how regulated digital assets can operate alongside traditional finance.