Universal and UAE Banks Launch First CBUAE-Registered USD Stablecoin for Compliant Digital Settlements
Universal Digital Intl Limited announced USDU, the UAE’s first USD-backed stablecoin registered by the Central Bank of the UAE (CBUAE) as a Foreign Payment Token under the Payment Token Services Regulation (PTSR). The launch enables compliant settlements for digital assets and derivatives, positioning the UAE as a regulated crypto hub amid rising MENA adoption.
Announcement Specifics
Universal, regulated by ADGM’s Financial Services Regulatory Authority (FSP No. 250089), launched USDU on January 28, 2026. The stablecoin maintains 1:1 USD backing through reserves held in onshore accounts at Emirates NBD and Mashreq Bank, with monthly independent attestation. Mbank serves as strategic banking partner. Distribution partnerships include Aquanow, a VARA-regulated entity in Dubai, and AECoin for future domestic conversions. Usage is limited to professional clients for cross-border digital asset settlements, excluding UAE domestic payments.
Stakeholder Perspective
“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.”
— Juha Viitala, CEO at Universal Digital Intl Limited
Why it matters: This statement addresses institutional demands for regulatory transparency in digital assets amid global stablecoin scrutiny.
Industry Context
Stablecoins are gaining significant traction across MENA, with the region recording $338.7 billion in on-chain value in 2024. The UAE specifically saw $30 billion in digital asset inflows by June 2024, ranking third in MENA for crypto adoption. While Zand Bank previously launched an AED-denominated stablecoin, USDU pioneers USD-backed foreign tokens under CBUAE regulatory framework.
The dual-hub structure of Abu Dhabi (ADGM) and Dubai (VARA) strengthens the UAE’s leadership position over regional competitors like Riyadh in regulated stablecoin infrastructure, potentially driving institutional capital inflows and decentralized finance growth.
Conclusion
USDU establishes a regulatory template for Foreign Payment Tokens in the UAE, with the potential to reduce cross-border settlement costs and enhance MENA’s competitiveness in global fintech markets.
Sources: Zawya, PwC, Chainalysis
