The United Arab Emirates has taken a significant step in regulated digital finance with the launch of USDU, a US dollar–backed stablecoin sanctioned by the UAE Central Bank. Developed by Universal Digital Intl Limited, USDU is now the first Foreign Payment Token officially registered under the UAE’s Payment Token Services Regulation (PTSR), enabling compliant digital-asset transactions across the country.
USDU is backed 1:1 with U.S. dollar reserves held at reputable financial institutions, including Emirates NBD, Mbank, and Mashreq, ensuring stability and trust. The stablecoin is designed to facilitate digital-asset settlements, allowing transactions to comply with UAE regulations that mandate the use of fiat currency or a registered foreign payment token.
Universal Digital Intl Limited has partnered with Aquanow, regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), to integrate USDU into the broader digital-asset ecosystem. This partnership enables access to a network of regulated service providers, enhancing adoption among financial institutions and businesses.
The introduction of USDU aligns with the UAE’s broader strategy to develop a transparent and efficient digital-asset market, supporting regulated settlements and promoting the use of USD-denominated stablecoins. With this launch, the UAE sets a benchmark for compliant digital payment infrastructure in the Middle East, paving the way for future onchain settlement services.
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