Circle Secures ADGM Approval in Abu Dhabi, Expanding in Middle East

Circle, the issuer of the USDC stablecoin, has received in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a regulated money services provider in the United Arab Emirates, as stated in an official press release. This milestone marks a significant step in Circle's strategy to expand its presence in the Middle East and Africa.

The in-principle approval (IPA) indicates that Circle meets the FSRA's key conditions and is on the path to obtaining a full Financial Services Permission (FSP) license. Once fully licensed, Circle will be authorized to offer regulated stablecoin services within the ADGM jurisdiction.

Jeremy Allaire, Circle's Co-Founder and CEO, stated that the approval "advances our strategy to establish deep roots in markets embracing the onchain economy." He emphasized that it underscores Circle's commitment to global stablecoin oversight, aiming to strengthen trust, compliance, and adoption worldwide.

In addition to regulatory progress, Circle has partnered with Hub71, Abu Dhabi's tech ecosystem. This collaboration will involve working on projects within ADGM's digital regulatory sandbox, allowing Circle to test and refine blockchain-based financial solutions under a progressive regulatory framework. Circle will also join Hub71's digital assets group, sharing its experience with a community of over 500 tech startups and investors.

Circle's expansion into the UAE aligns with the country's ambition to position itself as a global hub for digital assets and Web3 technologies. The UAE has been actively developing a regulatory environment conducive to digital finance innovation, attracting leading digital asset firms to establish operations within its borders.

This development follows Circle's incorporation of an entity in the ADGM in December 2024, a move aimed at enhancing financial inclusion and accessibility in the region by leveraging Circle's stablecoin infrastructure. The company also forged a partnership with LuLu Financial Holdings, a financial services conglomerate in the region, to streamline remittances and cross-border payments using USDC.

Circle's USDC is currently the second-largest stablecoin by market capitalization, with approximately $62 billion in circulation. The company's emphasis on transparency and regulatory compliance has positioned USDC as a preferred stablecoin for institutional use.

As Circle continues to expand globally, the company has also filed for an Initial Public Offering (IPO) in the United States, targeting a valuation between $4 billion and $5 billion. The IPO is backed by major financial institutions, including JPMorgan Chase and Citi, and represents one of the most significant crypto-related public offerings since Coinbase's debut in 2021.

Circle's regulatory approval in Abu Dhabi and its strategic partnerships within the region signify a robust commitment to fostering the growth of the digital economy in the Middle East. By embedding itself in Abu Dhabi's financial ecosystem, Circle aims to reinforce its long-term strategy while positioning USDC as a cornerstone of the emerging tokenized economy.

This move not only enhances Circle's ability to serve clients in the region but also aligns with its vision of fostering scalable, impactful financial solutions through the frictionless exchange of value.

As the UAE continues to embrace digital transformation, Circle's expansion is poised to play a pivotal role in shaping the future of finance in the region.