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The Central Bank of the UAE approved the launch of the dollar stablecoin USDU
- USDU became the first USD stablecoin approved by the Central Bank of the UAE.
- Reserves are held on a 1:1 basis in accounts at the country’s largest banks.
- The stablecoin is authorized for official settlements.
The Central Bank of the United Arab Emirates approved the launch of the country’s first dollar-backed stablecoin, USDU, under the Payment Token Services Regulation framework. The token has already been put into circulation and can be used for settlements involving digital assets in a regulated environment.
The issuer of USDU is Universal Digital, which is registered as a foreign payment token provider. Issuance and reserve management are conducted under the supervision of UAE regulators.
How the model works
USDU is backed by the US dollar at a 1:1 ratio. Reserves are held in secured accounts at Emirates NBD, Mashreq, and Mbank. This structure complies with regulatory requirements for settlement digital assets and enables the stablecoin’s use in institutional operations.
Under current UAE regulations, transactions involving digital assets and derivatives must be conducted either in fiat currency or through registered payment tokens, a category that now includes USDU.
Infrastructure and access
The infrastructure company Aquanow has been appointed as the global distributor of USDU. It will provide institutional access to the stablecoin outside the UAE, in jurisdictions where such activity is legally permitted.
Universal Digital states that the launch of USDU lays the foundation for scaling regulated on-chain settlements and developing payment infrastructure for digital assets.
Previously, in November 2025, the UAE carried out its first government transaction using the digital dirham as part of testing the national digital currency. The payment was completed on the mBridge platform in less than two minutes.
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