UAE Greenlights First Regulated USD Stablecoin
A regulated milestoneThe UAE has taken a major step in regulated crypto adoption by approving its first USD-backed stablecoin under a central bank framework. This move could reshape digital payments and on-chain settlements in the region. Read on to see why it matters.
Key Takeaways
- UAE’s central bank has approved its first fully registered USD-backed stablecoin
- The stablecoin is designed for regulated digital asset settlement
- The move strengthens the UAE’s position as a global crypto hub
The United Arab Emirates continues to cement its role as a global crypto leader after the Central Bank of the United Arab Emirates approved the country’s first centrally registered US dollar-backed stablecoin. The stablecoin, issued by Universal, is designed to support regulated digital asset settlement across financial institutions.
The approval allows the stablecoin to operate within the UAE’s official monetary framework, a key difference from many offshore-issued stablecoins that operate in legal grey zones. The token is fully backed by US dollar reserves and falls under the UAE’s newly introduced Payment Token Services Regulation.
Universal confirmed that the stablecoin is built to support enterprise-grade use cases rather than retail speculation. This includes on-chain settlement between banks, fintech firms, and licensed digital asset platforms. Finextra reported that this approval makes Universal’s token the first USD stablecoin to be registered directly with the UAE’s central bank.
One of the most notable aspects of this launch is its integration with the UAE’s broader digital asset settlement strategy. The Block highlighted that the stablecoin will be used within a regulated infrastructure that enables faster and cheaper settlement of tokenized assets, cross-border payments, and wholesale financial transactions. This is especially relevant as traditional settlement systems can take days to finalize transactions.
In its official press release, Universal stated that the stablecoin is designed to complement existing fiat payment rails, not replace them. By operating under central bank supervision, the issuer aims to provide transparency around reserves, governance, and compliance. These are areas where global regulators have raised concerns following high-profile stablecoin failures in previous market cycles.
For the UAE, this approval signals a shift from experimentation to execution. While many jurisdictions are still debating stablecoin rules, the UAE is actively deploying them within a regulated framework. This aligns with the country’s long-term vision to attract institutional capital and fintech innovation while maintaining financial stability.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risk, and readers should conduct their own research. Gambling involves risk and may not be suitable for everyone. Always gamble responsibly and only with funds you can afford to lose.
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