UAE Central Bank Registers USD Stablecoin USDU for Digital Settlements
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 1h ago- Stablecoin Registration: The UAE Central Bank has registered USDU as a Foreign Payment Token, aimed at providing compliant settlement for digital asset transactions, marking a significant step towards legitimizing stablecoins as settlement tools within a controlled market context, thereby enhancing institutional confidence.
- Transparency and Trust: USDU is backed 1:1 by U.S. dollars held in safeguarded accounts at local banks, with monthly independent attestations by a global accounting firm, ensuring compliance and transparency, which reduces compliance uncertainty for institutions.
- Market Infrastructure Development: Universal is collaborating with Aquanow for the distribution of USDU, with Aquanow operating under local virtual asset authority regulation, indicating the UAE's commitment to building infrastructure for regulated digital assets.
- Future Integration Potential: The potential integration of USDU with AECoin, the UAE's dirham stablecoin initiative, could create a more direct bridge between USD settlements and local currency, although the immediate focus remains on regulated market usage rather than consumer payments.
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.
