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 approval designates Universal as the country’s first authorized foreign payment token issuer, establishing a regulated dollar settlement option for digital asset transactions.
The registration comes as the UAE continues to position itself as a global hub for digital finance while tightening institutional standards. The framework requires digital asset payments and derivatives to be settled in fiat currency or approved foreign payment tokens, effectively granting USDU a unique regulatory status in the domestic market.
Institutional Design and Reserve Structure
USDU is issued as an ERC-20 token on Ethereum and is fully backed 1:1 by US dollar reserves held in safeguarded onshore bank accounts. Universal operates under dual oversight from the Abu Dhabi Global Market and the UAE central bank, a structure designed to strengthen governance, custody, and disclosure standards.
The stablecoin is intended primarily for institutional and professional users, with regulated distribution partners supporting integration into settlement and on- and off-ramp infrastructure. This design reflects growing demand for compliant stablecoin instruments as regional competition accelerates among financial centers seeking to attract institutional crypto flows.
