USDU: first CBUAE-registered USD stablecoin by Universal Digital
Abu Dhabi’s Universal Digital has introduced USDU, the first US dollar‑backed stablecoin to be registered by the Central Bank of the United Arab Emirates (CBUAE) as a Foreign Payment Token under the Payment Token Services Regulation (PTSR). The registration designates Universal as the UAE’s first Foreign Payment Token Issuer and establishes a regulated US dollar‑denominated settlement option for digital assets within the country, according to a company statement.
A company spokesperson said the PTSR provided a transition period for payment token issuers to achieve compliance and that, among USD stablecoins, USDU is the first to obtain this registration.
USDU within the UAE payment token framework
Universal is authorized by Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) to issue a fiat‑referenced token and is now also registered with the CBUAE for payment‑token activities.
USDU is the first USD stablecoin registered with the UAE central bank. Source: Universal
The spokesperson said this dual oversight enforces stricter standards across reserve custody, governance, disclosures, and operational controls. For institutions, they added, the registration offers a clearer compliance pathway for certain regulated use cases.
Under the PTSR, payments for digital assets and digital asset derivatives in the UAE may only be made in fiat currency or a Registered Foreign Payment Token. At present, USDU is the only USD stablecoin that formally satisfies these requirements.
Reserves and banking partners
USDU is issued as an ERC‑20 token on Ethereum and is intended for institutional and professional users. It features a conservative reserve structure and direct banking integrations.
Reserves are fully backed 1:1 by US dollars held in safeguarded onshore accounts at Emirates NBD and Mashreq. Mbank serves as a strategic corporate banking partner, and a global accounting firm provides monthly independent attestations.
According to the spokesperson, banking partners oversee reserve custody and safeguarding, while the issuer remains responsible for fulfilling its obligations. The spokesperson added that user confidence is supported by regulated banking custody, recurring third‑party attestations, and regulatory oversight.
Institutional distribution via Aquanow
The company is collaborating with AE Coin, a UAE dirham‑denominated stablecoin licensed by the CBUAE, to enable future conversion between USDU and AE Coin for domestic settlement, aligning US dollar and dirham payment tokens under the same regulatory framework.
Universal has appointed Aquanow, regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), as its global distribution partner to broaden institutional access to USDU and integrate it into regulated digital asset infrastructure, including on‑ and off‑ramps and settlement workflows.
USDU may be used for UAE domestic payment of digital assets and derivatives but is not authorized for general retail payments on the mainland, where dirham‑denominated instruments remain the norm.
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