According to a ChainCatcher report citing CoinDesk, the United Arab Emirates (UAE) Central Bank has approved USDU, the country's first U.S. dollar-backed stablecoin, under its "Payment Token Services Regulation." The stablecoin is issued and managed by Universal Digital, a cryptocurrency company regulated by the Abu Dhabi Global Market Financial Services Regulatory Authority. USDU is pegged 1:1 to dollar reserves, with the underlying funds held in safeguarded accounts at onshore banks such as the UAE Central Bank and Mashreq Bank. This marks the first time a U.S. dollar stablecoin is officially operating under a central bank's payment regulatory framework. Aquanow has been appointed as the global distribution partner and will provide access to USDU for institutions outside the UAE in permitted jurisdictions.
UAE Central Bank Approves USDU, the First Dollar-Backed Stablecoin in the Country
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Summary
The UAE Central Bank has approved USDU, the country's first dollar-backed stablecoin, under its stablecoin regulatory framework. The Payment Token Services Regulations now include USDU, issued by Universal Digital, a company regulated by the Abu Dhabi Global Market. The stablecoin is pegged 1:1 to USD reserves, held in secured accounts at onshore banks such as the UAE Central Bank and Mashreq Bank. Aquanow will distribute USDU globally, ensuring compliance with CFT (Countering the Financing of Terrorism) measures and regulatory standards.
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