Jakarta, Pintu News – The United Arab Emirates has set another milestone in the global crypto and cryptocurrency industry with the launch of the first US dollar stablecoin to be officially registered with the central bank. Abu Dhabi-based company Universal Digital introduced USDU as a fully regulated stablecoin.

The arrival of USDU marks a new chapter in the integration of digital assets into the UAE’s formal financial system. This move also strengthens the country’s position as a center for blockchain and digital finance innovation.

USDU becomes the first US dollar stablecoin to be registered with the UAE Central Bank

Universal Digital announced that USDU has been registered with the Central Bank of the United Arab Emirates (CBUAE) as a Foreign Payment Token. The registration comes under the Payment Token Services Regulation (PTSR) framework that regulates the use of payment tokens in the UAE. With this status, Universal officially became the country’s first Foreign Payment Token issuer. USDU also becomes the only US dollar stablecoin that is fully compliant with the UAE central bank.

According to Universal management, this status provides significant legal certainty for institutional players. Under the PTSR, digital asset and crypto derivative transactions in the UAE can only be conducted using fiat currencies or registered foreign payment tokens. So far, global stablecoins such as Tether USD (USDT) and USD Coin (USDC) have been widely used, but have not been officially registered. As such, USDU is now the most regulated US dollar option for institutional needs.

Double Control and Conservative Reserve Structure

USDU is issued under dual regulatory oversight, namely the Abu Dhabi Global Market Financial Services Regulatory Authority and the Central Bank of the UAE. Universal is licensed to issue tokens that reference fiat currencies as well as carry out payment token activities.

This dual oversight demands high standards in governance, transparency and reserve management. For financial institutions, this structure is considered to provide a clearer compliance path.

From a technical perspective, USDU is issued as an ERC-20 token on the Ethereum (ETH) network. This stablecoin is specifically designed for institutional and professional use, not for general retail transactions. The entire USDU reserve is backed 1:1 by US dollars, where every 1 USDU represents a value of approximately IDR16,797. Reserve funds are held in onshore accounts maintained by Emirates NBD and Mashreq, with monthly independent audits to ensure transparency.

Institutional Distribution and Payment System Integration

To expand adoption, Universal appointed Aquanow as its global distribution partner. Aquanow is a digital asset infrastructure provider regulated by the Virtual Assets Regulatory Authority in Dubai. Through this partnership, USDU is integrated into institutional crypto transaction on-ramp, off-ramp, and settlement systems. This strategy targets licensed banks, brokers, and trading venues in the UAE and internationally.

In addition, Universal is also working with AE Coin, a United Arab Emirates dirham-based stablecoin that has been licensed by the central bank. This collaboration opens up direct conversion opportunities between USDU and AE Coin for domestic settlement needs. The integration aligns the US dollar and dirham tokens under one regulatory framework. However, the use of USDU remains restricted to digital asset and derivative transactions, not retail payments on the UAE mainland.

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Reference:

Cointelegraph. Abu Dhabi company launches first UAE-registered US dollar stablecoin. Accessed January 30, 2026.
Featured Image: Convention 360

Author

Kezia Marcellova

Topic

#United Arab Emirates

#Stablecoin