Banks and FinTechs race to control stablecoin infrastructure as MENA hubs advance
Recent partnerships between BitGo-SoFi and Visa-Bridge reveal a strategic battle to dominate the stablecoin technology stack—from issuance to payments—with direct implications for MENA’s trade-heavy corridors. Wirex reported $850 million in annualized stablecoin card volumes, up 10x month-over-month, underscoring rapid mainstream adoption.
Overview
BitGo has partnered with SoFi Bank to provide infrastructure for SoFiUSD, the first U.S. bank-issued stablecoin on public blockchain, with Mastercard joining distribution. Separately, Visa is expanding Bridge stablecoin cards to over 100 countries, including Dubai and Riyadh. Bridge transactions quadrupled in 2025 amid $33 trillion in global stablecoin volume.
“SoFiUSD represents the convergence of compliant banking and blockchain efficiency”
— Mike Belshe, CEO at BitGo
Analysis: This layered approach—combining regulated banking, custody, and blockchain networks—signals a hybrid infrastructure model that could redefine cross-border payments efficiency.
The UAE approved USDU on January 29, 2026, backed by Emirates NBD and Mashreq in Dubai. RAKBANK secured approval for an AED-denominated stablecoin. Regional digital asset volumes reached $34 billion.
“USDU sets a new benchmark for regulated digital value”
— Juha Viitala, CEO at Universal
Analysis: This statement reflects the MENA region’s positioning as a first-mover in compliant, bank-backed stablecoin issuance, distinguishing it from the U.S. and European markets still navigating regulatory frameworks.
Why this matters
Stablecoins address a critical MENA need: reducing friction in cross-border trade corridors connecting Asia, Europe, and Africa. The UAE’s regulatory clarity—evidenced by the USDU approval and RAKBANK’s AED stablecoin license—positions Dubai as a global testbed for programmable finance infrastructure. This parallels Saudi Arabia’s fintech ambitions under Vision 2030, though specific Riyadh stablecoin initiatives remain undisclosed.
The infrastructure battle has global implications. While the Federal Reserve and European Central Bank continue researching stablecoin risks, MENA regulators are moving to implementation. The convergence of traditional banks (Emirates NBD, Mashreq) and blockchain infrastructure (BitGo, Bridge) creates a compliance-first model that could export regulatory best practices.
What to watch next: The launch timeline for the UAE Dirham stablecoin on ADI Chain and any Saudi announcements on government-backed digital currency initiatives. Monitor whether MENA’s regulatory lead translates into payment network adoption across the GCC.
Conclusion
The race to own the stablecoin stack—issuance, custody, card networks—is accelerating. MENA’s regulated-first approach positions regional hubs as infrastructure leaders in programmable finance, potentially ahead of Western markets constrained by regulatory uncertainty.
Sources: PYMNTS, PR Newswire, Business Wire, MENA Fintech Association, MENA Fintech Association
