Regulated U.S. Dollar-Pegged Stablecoin Launched in UAE

FinTech company Universal announced the launch of USDU, a dollar-pegged stablecoin included in the Central Bank of the UAE’s register. The asset was registered under the Payment Token Services Regulation (PTSR) and granted the status of a Foreign Payment Token (FPT).

Under the PTSR requirements, settlements involving digital assets and derivatives in the UAE are permitted exclusively in fiat or using registered FPTs. At present, USDU is the only token to have obtained such registration, making it the sole legal instrument for U.S. dollar settlements in the country’s digital market.

Universal, the issuer of USDU, is registered in the Abu Dhabi Global Market (ADGM) free zone and operates under a license from the Financial Services Regulatory Authority (FSRA). The company also holds authorization to issue a Fiat-Referenced Token for professional clients.

USDU reserves are fully backed 1:1 by U.S. dollars and held in segregated accounts at Emirates NBD and Mashreq banks. Al Maryah Community Bank (Mbank) acts as the project’s strategic corporate banking partner. Independent verification of the reserves will be conducted monthly by an international auditing firm.

To support domestic settlements, Universal is also working on a mechanism to convert USDU into AE Coin, a licensed dirham-pegged stablecoin. This approach will allow USDU to be used in conjunction with local payment infrastructure for digital asset transactions within the country.

Global distribution of USDU will be supported through a partnership with Aquanow, an international infrastructure provider for institutional participants in digital markets. In the UAE, Aquanow operates under the supervision of Dubai’s Virtual Assets Regulatory Authority (VARA), enabling the integration of USDU into a regulated ecosystem of services for professional market participants.

Beyond the domestic market, USDU will also be usable on international digital platforms, subject to compliance with local regulations. The project envisions further ecosystem development involving banks, trading venues, and technology providers.

At the end of 2025, UAE authorities expanded the CBUAE’s powers in regulating the crypto market and licensing its participants. The UAE President also approved a federal law establishing a comprehensive regulatory framework for digital assets. This regulatory clarity increased the attractiveness of the jurisdiction for crypto companies, many of which are actively considering entering the UAE market. For example, Revolut is preparing to offer payment services in the country, while Ripple is expanding its presence in the UAE payments market.