UAE Approves USDU, First USD-Backed Stablecoin Under Central Bank Regulation

On January 29, the UAE’s Central Bank approved its first US dollar-backed stablecoin, USDU, managed by Universal Digital and issued under the Payment Token Services Regulation framework.

This landmark approval introduces regulatory clarity for digital assets in the UAE, potentially revolutionizing international digital payments and enhancing trust among global financial institutions.

UAE Central Bank Moves to Regulate First USD Stablecoin

The UAE central bank has officially approved USDU, a USD-backed stablecoin issued by Universal Digital, marking a first for a USD-pegged stablecoin under central bank regulation. The approval occurred under the Payment Token Services Regulation framework.

USDU provides clarity to institutions with reserves held at major banks like Emirates NBD and Mashreq Bank. The stablecoin targets professional clients for cross-border digital asset settlements, excluding domestic payments within the UAE.

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Key industry reactions indicate strong support for USDU’s regulatory clarity. Juha Viitala of Universal Digital Ltd. describes USDU as a pivotal asset for transforming the UAE’s digital-asset market. “Being the first Foreign Payment Token registered by the UAE Central Bank – and supported by leading UAE banks – gives institutions the clarity and confidence they have been waiting for. It lays the groundwork for a more transparent and efficient digital-asset market in the UAE and beyond.” Aquanow is the global distribution partner outside the UAE.

USDU’s Impact on UAE’s Digital Asset Landscape

Did you know? The introduction of USDU marks the first time a USD-backed stablecoin operates under a central bank regulatory framework, setting a precedent for similar initiatives globally.

Ultracoin (USDU)’s stable price reflects its USD backing. With a total market cap of $0, its fully diluted market cap is $10.01 billion, reflecting strategic reserve holdings with key UAE banks. Recent 60-day price movement shows a 9.78% increase. Data from CoinMarketCap as of January 29, 2026.

Experts from Coincu highlight that USDU’s regulatory approval could enhance investor confidence and foster digital infrastructure development in the UAE. This regulatory clarity may pave the way for future digital asset innovations, creating a more transparent financial ecosystem.