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- USDU stablecoin becomes the first CBUAE-registered USD token under the UAE payment token rules.
- Registration introduces a regulated USD settlement option for digital asset activity in the UAE.
- Dual oversight boosts governance, reserve standards, and institutional confidence in the token.
Universal Digital has launched the USDU stablecoin, becoming the first issuer to receive registration from the Central Bank of the United Arab Emirates (CBUAE) under the Payment Token Services Regulation.
The approval designates USDU as a Registered Foreign Payment Token. It also establishes a regulated US dollar settlement option for digital asset transactions in the country.
The company said the registration confirms Universal Digital as the UAE’s first licensed Foreign Payment Token Issuer. The approval creates a formal structure for USD-denominated settlement within regulated financial environments across the UAE.
Senior executive officer Juha Viitala said the PTSR included a transition period for issuers seeking compliance. He stated that USDU was the first USD-backed stablecoin to complete the registration process under the framework.
CBUAE Supervision Enhances USDU Stablecoin Compliance
However, Universal Digital has obtained regulatory permission from the Abu Dhabi Global Market’s Financial Services Regulatory Authority to issue a fiat-referenced token.
Its new registration with the CBUAE adds an additional layer of supervision. Viitala stated that this would bring higher standards for governance and operations.
He further stated that “compliance clarity is important for institutions that need regulated settlement solutions for specific use cases.”
Banks, brokers, and regulated platforms in the UAE can now use a central bank-registered US dollar token in settlement, compliance, and reporting platforms. This would bring digital asset payments in line with current financial regulations in the UAE.
According to the PTSR, digital asset and derivative payments can only be settled in fiat currency or in a Registered Foreign Payment Token.
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Popular global stablecoins such as USDT and USDC remain widely used, but they are not registered under the UAE’s payment-token regime. Viitala said USDU is the only US dollar token that currently meets the regulatory requirement.
USDU Runs on Ethereum With Fully Backed Reserves
However, USDU is issued as an ERC-20 token on Ethereum. It is designed for institutional and professional users and operates with a conservative reserve model. Universal Digital said the reserves are fully backed 1:1 by US dollars held in safeguarded accounts at Emirates NBD and Mashreq.
Mbank also serves as a corporate banking partner. A global accounting firm provides monthly attestations to confirm reserve holdings. Viitala said confidence depends on regulated custody, independent verification, and ongoing regulatory oversight.
Universal Digital is working with AE Coin, a CBUAE-licensed dirham-denominated stablecoin. However, the collaboration aims to support future conversion between USDU and AE Coin for domestic settlement within a unified regulatory perimeter.
The company appointed Aquanow, regulated by Dubai’s Virtual Assets Regulatory Authority, as its global distribution partner.
USDU may be used for domestic settlement of digital assets and derivatives, but it is not allowed for general retail payments on the UAE mainland, where dirham-denominated instruments remain mandatory.
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