UAE’s central bank has approved the first US dollar-backed stablecoin, USDU, issued by Universal Digital, a regulated cryptocurrency firm in Abu Dhabi.

The stablecoin’s reserves are held 1:1 in onshore accounts at Emirates NBD, Mashreq, and Mbank.

Aquanow has been appointed as a global distribution partner to support institutional access outside the UAE.

The move makes the UAE one of the few jurisdictions with a stablecoin operating under a central bank payments regime, according to the regulator.

The approval aims to promote transparency and efficiency in digital asset markets, with industry players noting increased institutional interest in regulated digital instruments.

🔗 Source: CoinDesk