Abu Dhabi Launches First USD-Backed Stablecoin USDU
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 1h ago- Compliance Registration: Universal Digital launched USDU on January 29 as the first USD-backed stablecoin registered under the UAE Central Bank's Payment Token Services Regulation, providing a compliant settlement option for digital asset transactions, although it restricts general payments and retail use.
- Market Context: Despite USDU's registration, Tether's USDT and Circle's USDC dominate cryptocurrency trading in the UAE, raising questions about the demand for additional compliance costs versus existing market infrastructure.
- Functionality Limitations: USDU is exclusively for settling digital asset transactions and derivatives within the UAE, prohibiting use for consumer payments, vehicle purchases, or rent, highlighting its specialized market positioning.
- Banking Support: USDU maintains a 1:1 dollar backing through reserves at Emirates NBD and Mashreq banks, with monthly attestations by an international accounting firm, ensuring compliance and transparency.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
