UAE Approves First USD-Pegged Stablecoin Under Central Bank Framework

The Central Bank of the UAE approved USDU, a stablecoin by Universal Digital, under its regulatory framework, marking its debut as the first US dollar-pegged stablecoin in the UAE.

This approval highlights the UAE’s advanced regulatory stance in digital currencies, aiming to strengthen institutional settlement options and potentially setting a precedent for future global frameworks.

UAE Approves USDU Stablecoin for Institutional Use

The USDU is issued by Universal Digital Ltd. and managed under the oversight of the Abu Dhabi Global Market Financial Services Regulatory Authority. USDU reserves are maintained in UAE banks in a 1:1 USD ratio, promoting security. Aquanow is the global distributor, extending its institutional reach outside the UAE in compliance with regulations.

The approval of USDU introduces a new avenue for digital asset settlements within regulated frameworks, specifically designed for institutional use. This is seen as a major step forward in the nation’s digital economy.

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USDU is a significant step in creating a compliant pathway for digital asset settlement in the UAE.

While reactions from major stakeholders were not publicly disclosed, the move is expected to strengthen the UAE’s position in the digital finance landscape, encouraging other nations to consider similar regulatory advancements.

USDU Market Data and Regulatory Advancement

Did you know? The UAE’s regulatory framework for stablecoins now positions the country ahead, as the US and EU have not yet approved a USD stablecoin of this nature.

As of January 29, 2026, aggregated data from CoinMarketCap lists USDU with a stable market price at $1.00 and zero market dominance. The stablecoin shows a fully diluted market cap of $10.01 billion with observed price stability over recent months.

Analysts from the Coincu research team emphasize the unprecedented nature of this stablecoin’s approval under a central bank-led framework, noting potential impacts on domestic and regional digital asset policies. This initiative may drive technological innovation and influence regulatory trends globally.