On January 29, 2026, the Central Bank of the United Arab Emirates (CBUAE) officially approved USDU, the nation’s first USD-backed stablecoin regulated under the federal Payment Token Services Regulation (PTSR). This landmark approval positions the UAE as a global leader in the regulated digital asset space, moving into operational phases well ahead of the U.S. and EU.

• Issuer & Regulation: USDU is issued by Universal Digital, a firm regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). It is the first “Foreign Payment Token” registered under the CBUAE’s comprehensive new framework.
• Banking & Reserves: Maintaining a strict 1:1 backing, USDU reserves are held in safeguarded, liquid onshore accounts at premier UAE institutions, including Emirates NBD, Mashreq, and Mbank. Monthly independent audits ensure transparency and parity.
• Institutional Access: Digital asset infrastructure firm Aquanow has been appointed as the global distribution partner, facilitating secure institutional access for cross-border settlements outside the UAE.

This move provides the “regulatory gold standard” that institutional investors have demanded. By embedding a USD-pegged token within a central bank payments regime, the UAE reduces settlement friction and enhances market transparency. While domestic use is restricted to professional clients for digital asset settlements, USDU serves as a critical bridge between traditional finance and the evolving on-chain economy.

End Notes

Source: https://www.coindesk.com/business/2026/01/29/uae-s-central-bank-has-approved-a-usd-backed-stablecoin