UAE Approves First USD-Backed Stablecoin (USDU)

On 29th January 2026, the Central Bank of the United Arab Emirates has approved the country’s first USD-backed stablecoin, marking a major step in regulating digital assets and payment tokens.

The stablecoin, USDU, has been approved under the Payment Token Services Regulation, establishing a formal regulatory framework for its use.
USDU is issued and managed by Universal Digital, a crypto company regulated by the Financial Services Regulatory Authority of Abu Dhabi Global Market.
Universal Digital has become the first foreign payment token issuer registered with the UAE central bank.
The approval places the UAE among the first major financial jurisdictions to enable fully regulated USD-denominated digital settlements.
Stablecoins are cryptocurrencies pegged to reserve assets such as the US dollar, designed to minimise volatility.
USDU is expected to support payments, settlements, and cross-border transfers using blockchain technology.