UAE Central Bank Approves First USD Stablecoin - USDu

BlockBeats News, January 29th, the Central Bank of the UAE (CBUAE) has officially approved the USD stablecoin USDU, which is the country's first US dollar-pegged stablecoin approved under the Payment Tokens Service Provider Regulatory Framework (PTSR). USDU is issued and managed by the crypto company Universal Digital, regulated by the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA).

It was disclosed that the USDU reserve is held in a 1:1 ratio in protected accounts within the UAE, with partner banks including Emirates NBD, Mashreq, and Mbank.

The digital asset infrastructure company Aquanow has been designated as the global distribution partner, which will support USDU's institutional usage outside the UAE in a compliant manner. Officials stated that this move signifies the first implementation of a US dollar stablecoin under a central bank-led payment regulatory framework, positioning the UAE ahead of the United States, the European Union, and most Asian economies in stablecoin regulatory progress.