Universal Digital International Limited launched the UAE’s first U.S. dollar-backed stablecoin, USDU, on Thursday, amid a rise in investor demand.
The stablecoin is officially approved by the Central Bank of the UAE making Universal the country’s first Foreign Payment Token Issuer under the Payment Token Services Regulation (PTSR).
USDU is designed to make digital-asset transactions simpler and fully compliant, acting as a U.S. dollar‑denominated token for settling trades.
The business stated that its stablecoin is backed 1:1 by US dollar reserves held by financial institutions such as Emirates NBD, Mbank, and Mashreq.
USDU enables compliant crypto settlements in UAE
Under UAE rules, crypto and derivatives transactions must be settled in either fiat currency or a registered payment token like USDU.
The company hopes the launch will be seen as a milestone in building a regulated digital-asset ecosystem, helping the UAE strengthen its position as a hub for compliant, secure, and efficient crypto transactions.
USDU fills the gap between traditional money and digital assets for investors and businesses thereby becoming a safe, government-approved way to trade and settle in the crypto space.
Universal also announced a partnership with Aquanow, which is controlled by Dubai’s Virtual Assets Regulatory Authority, or VARA.
The agreement with Aquanow aims to help integrate USDU “into the broader digital-asset ecosystem through Aquanow’s established network of regulated service providers.”
UAE strengthens position as crypto and digital asset leader
The UAE is quickly becoming a global center for crypto and digital assets by making rules that promote innovation while also keeping things safe and regulated.
Stablecoins, particularly those backed by the U.S. dollar, play an important role in this effort by enabling individuals and companies to settle digital asset and derivatives transactions securely and in a regulated manner.
The country’s move links traditional finance and blockchain technology through its Payment Token Services Regulation (PTSR) and tokens like USDU.
The initiative not only attracts local and international investors but also puts the UAE at the heart of the global financial system as a trustworthy center for digital finance, with a focus on transparency, efficiency, and growth.
The issuance of the USDU stablecoin follows the recent licensing of Circle by the Abu Dhabi Global Market’s Financial Services Regulatory Authority, enabling it to operate as a money services provider in the UAE.
The UAE is increasing its efforts to ensure the safe and regulated use of digital assets in the nation in the wake of stablecoins and crypto becoming an integral part of the mainstream financial system.