The Central Bank of the UAE has approved Universal Digital to issue the US dollar stablecoin USDU

According to CoinDesk, the Central Bank of the UAE has approved the country's first dollar-backed stablecoin, USDU, under its Payment Token Services Regulation.

The stablecoin is issued and managed by the crypto company Universal Digital, which is regulated by the Financial Services Regulatory Authority of Abu Dhabi Global Market. USDU is pegged to the dollar at a 1:1 ratio, with the related funds held in safeguarded accounts at onshore banks such as the UAE National Bank and Mashreq Bank. This means that a dollar stablecoin is officially operating for the first time under a central bank payment regulatory framework. Aquanow has been appointed as the global distribution partner, providing access to USDU for institutions outside the UAE in licensed regions.