UAE Launches First USD-Pegged Stablecoin Under Central Bank Registration

The UAE has officially entered the regulated stablecoin race, where the private firm, Universal Digital Intl Limited, launched the first U.S. dollar-pegged token, registered by the Central Bank of the UAE, on January 29, aimed at enabling compliant digital-asset settlement under the country’s new payment token framework.

USDU, Backed by Major UAE Banks

The name of the USD-backed stablecoin is USDU, and the stablecoin’s reserves will maintain a strict 1:1 backing with US dollars, which have very limited practical risk and very limited liquidity risk. Which is held in accounts at major UAE-based banks, including Emirates NBD, Mashreq, and M Bank, as per the official news published on the firm’s site.

“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. It lays the groundwork for a more transparent and efficient digital-asset market in the UAE and beyond,” said Juha Viitala, SEO of Universal, noted on the website.

Also, the supporting comments from other banks, like Joel Van Dusen, Group Head of Corporate and Investment Banking, Mashreq, said, “We see growing institutional interest in regulated digital-value instruments, and Universal’s introduction of USDU is a timely step that supports this market’s maturation.”

As per the USDU’s whitepaper, “USDU is a Registered Foreign Payment Token by the UAE Central Bank under the PTSR and as such may not be used for payment purposes in the UAE (i.e., UAE domestic payments). USDU may be used as a Means of Payment (as defined in the PTSR) for the purchase of virtual assets or derivatives of virtual assets in the UAE. USDU may also be used as a method of payment in international markets.”

In addition, Universal added its partnership with Aquanow, as it is regulated under the Dubai Virtual Assets Regulatory Authority, which positions USDU for compliant uptake in the UAE and rapid integration into the broader digital-asset ecosystem

UAE Steps Ahead In Regulated Stablecoin Race

The development comes amid accelerating stablecoin activity in the region. As in the initial week of this month, RAKBank received in-principle approval from the UAE Central Bank to issue a fully collateralized stablecoin pegged to the dirham, showing the UAE’s push to build a regulated, multi-currency digital payments and settlement infrastructure.

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