Circle Targets UAE's $44 Billion Remittance Market with USDC Integration

The UAE is a significant hub for expatriate workers, with around nine million individuals sending money to their home countries each year. Traditional remittance methods often involve high fees and delays, with global remittance costs averaging 6.62% of the amount sent, and banks charging up to 13.64%. In the Middle East, the average cost stands at around 6.5%.

According to a report by AGBI, Circle's President Heath Tarbert highlighted the potential benefits of integrating USDC into remittance services, stating that embedding the stablecoin into payment systems could reduce costs by "30 to 100 times" compared to traditional methods, which rely on correspondent banks and can take days to clear. Tarbert emphasized that consumers would pay significantly less and receive their money much faster.

Circle's expansion into the UAE is bolstered by regulatory approvals. In April 2025, the company received in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a money services provider. This preliminary approval is a significant step toward obtaining a full license to offer financial services in the UAE.

Additionally, Circle's USDC and EURC stablecoins have been recognized by the Dubai Financial Services Authority (DFSA) as official crypto tokens within the Dubai International Financial Centre (DIFC). This recognition allows financial institutions and fintech companies operating in the DIFC to integrate USDC and EURC into their digital asset services, payments, and treasury management.

Circle is actively engaging with remittance firms and other stakeholders in the UAE to facilitate the adoption of USDC. The company is in early discussions with money-transfer houses to integrate USDC into one of the world's busiest remittance corridors.

In April 2025, Circle launched its next-generation payments and remittance network, leveraging USDC and EURC to enable real-time, 24/7 settlement. This network aims to provide faster and more cost-effective cross-border transactions, positioning Circle as a formidable competitor to established payment networks like Visa and Mastercard.

Circle has also formed strategic partnerships to enhance its global reach. In April 2025, the company announced a collaboration with Onafriq, Africa’s largest payments gateway, to transform cross-border payments and digital financial services using USDC. This partnership aims to simplify financial transactions, reduce costs, and strengthen trust across more than 40 African markets.

USDC, the world's second-largest stablecoin, has experienced significant growth, with its circulating supply increasing by over 40% in 2025, reaching $62 billion. The stablecoin is backed by cash and short-term US Treasuries held by BNY Mellon and managed via a BlackRock money-market fund.

Circle's efforts to expand USDC's utility align with the broader trend of stablecoins gaining traction as viable alternatives for global money transfers. The company's initiatives in the UAE and beyond reflect a strategic push to embed USDC into the global financial ecosystem, offering faster, more affordable, and transparent international money transfers.

Circle's targeted expansion into the UAE's remittance market represents a significant step in the evolution of cross-border payments. By leveraging blockchain technology and forming strategic partnerships, the company aims to provide efficient and cost-effective solutions for millions of expatriate workers and their families.

As regulatory frameworks continue to evolve and the adoption of stablecoins grows, Circle's initiatives could play a pivotal role in shaping the future of global finance, particularly in regions with high remittance volumes like the UAE.