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Abu Dhabi–based Universal Digital has launched USDU, the first US dollar-backed stablecoin registered by the Central Bank of the United Arab Emirates under its Payment Token Services Regulation.
The registration makes Universal the UAE’s first Foreign Payment Token Issuer and establishes a regulated US dollar settlement option for digital assets and derivatives in the country.
“Registration provides a clearer compliance pathway for certain regulated use cases,”
A Universal spokesperson said, adding that dual oversight imposed a higher level of discipline around reserves, governance and disclosures.
USDU is issued as an ERC-20 token on the Ethereum blockchain and is designed for institutional and professional use rather than general retail payments.
The stablecoin is fully backed one-to-one by US dollars held in safeguarded onshore accounts at Emirates NBD and Mashreq, with monthly independent attestations provided by a global accounting firm.
Universal said USDU is currently the only US dollar stablecoin that meets the UAE’s requirements for payments involving digital assets under the PTSR framework.
To support institutional adoption, Universal has appointed Aquanow as its global distribution partner to integrate USDU into regulated settlement and on- and off-ramp infrastructure.
At the time of reporting, Ethereum price was $2,955.29.