The Central Bank of the United Arab Emirates has approved the country’s first US dollar–backed stablecoin, USDU, allowing its use for regulated cryptocurrency and derivatives settlements.
Issued by regulated entity Universal Digital, USDU is fully backed 1:1 by US dollar reserves held in onshore accounts with partner banks, supported by monthly independent attestations.
Emirates NBD and Mashreq are its primary banking partners, while Mbank serves as a strategic partner.
Juha Viitala, chief executive of Universal Digital, said the approval provides long-awaited regulatory clarity for institutions, noting that USDU’s backing by major UAE banks enhances market confidence.
Crypto infrastructure firm Aquanow has been appointed global distribution partner, enabling access for institutional and professional clients outside the UAE where permitted.
The stablecoin is expected to lower cross-border settlement costs and enhance the MENA region’s competitiveness in the global stablecoin market.
