UAE Central Bank Approves First Registered USD Stablecoin

Universal has announced that the stablecoin has been approved as a Registered Foreign Payment Token, allowing it to be used within the UAE’s regulated digital-asset ecosystem. Under the current rules, certain digital-asset transactions must be settled either in fiat currency or through a registered payment token, making registration a key requirement for compliant market activity.

Universal is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) and is based in Abu Dhabi. The company said USDU has been designed specifically for regulated environments, with a focus on institutional and market infrastructure use rather than everyday consumer payments.

Universal said USDU is backed on a one-to-one basis with U.S. dollars, with reserves held in onshore accounts at Emirates NBD and Mashreq Bank, alongside support from Mbank as a corporate banking partner. The company said it plans to publish monthly independent attestations by a global accounting firm, providing visibility into reserves and circulation.

Rather than positioning USDU as a retail payment tool, Universal described the stablecoin as a settlement instrument. Its intended use cases include digital-asset trading, institutional settlement flows, and regulated market activity where compliance with UAE payment rules is required.

The company said the stablecoin’s structure reflects regulatory expectations around transparency, segregation of reserves, and operational controls, areas that have become central to stablecoin oversight globally.

As part of the launch, Universal confirmed a partnership with Aquanow, a digital-asset infrastructure provider regulated by Dubai’s Virtual Assets Regulatory Authority (VARA). Through this collaboration, USDU is expected to be integrated into Aquanow’s institutional network, making it accessible to exchanges, trading platforms, and other regulated service providers.

Universal said the partnership is intended to support institutional access while maintaining regulatory alignment across jurisdictions where digital-asset activity is permitted under supervision.

Several UAE financial institutions are involved in the initiative. Emirates NBD said its participation reflects its support for regulated digital-asset projects that align with the country’s broader financial innovation agenda. Mashreq Bank also pointed to growing interest from institutional clients in digital settlement tools that operate within clear regulatory boundaries.

Mbank said its role supports efforts to build compliant digital finance infrastructure and reflects a broader shift among regional banks toward engaging with regulated digital-asset frameworks rather than unregulated alternatives.

Taken together, the involvement of established banks suggests increasing comfort within the traditional financial sector when digital assets are introduced through regulated channels.

Stablecoins have become an important part of global digital-asset markets, particularly as tools for trading and settlement. At the same time, they have drawn increased regulatory scrutiny, with authorities in many jurisdictions working to define how such instruments should be supervised and integrated into existing financial systems.

The UAE has taken a structured approach, introducing frameworks that distinguish between different types of digital assets and clearly define the role of payment tokens. Within this model, registered stablecoins are treated as infrastructure components rather than speculative products.

USDU’s launch fits into that approach, offering a regulated option for dollar-denominated settlement within the UAE’s digital-asset markets, while maintaining oversight through central bank registration.

Universal said the registration process reflects the UAE’s focus on regulatory clarity and risk management. By requiring stablecoins used in regulated markets to be registered, authorities aim to address concerns around reserve backing, transparency, and operational resilience.

For institutions, regulated stablecoins can offer an additional settlement option in specific use cases, particularly where speed or programmability is needed, provided compliance requirements are met.

Universal said it plans to expand USDU’s role within regulated environments, with an emphasis on compliant integration rather than rapid consumer adoption.

Around the world, regulators are refining how stablecoins should be governed, and USDU illustrates how such instruments can operate within a clearly defined supervisory framework. In the UAE, the focus remains on controlled adoption, institutional participation, and alignment with existing financial systems.