What is USDU?
USDU is a USD-pegged stablecoin issued by Universal Digital International Limited, an ADGM-regulated entity (FSRA License No. 250089). It is the first stablecoin to be registered as a Foreign Payment Token under the UAE Central Bank's Payment Token Services Regulation (PTSR), marking a historic milestone for the region's digital asset ecosystem.
CBUAE Registered
First Foreign Payment Token Issuer registered with the Central Bank of the UAE under the PTSR framework.
1:1 USD Reserves
Fully backed by US dollars held at Emirates NBD and Mashreq banks, with Mbank as strategic partner. Monthly independent audits by a global accounting firm.
Global Distribution
Aquanow, a VARA-regulated digital asset infrastructure firm, serves as the global distribution partner for USDU.
"USDU sets a new benchmark for regulated digital value, combining robust compliance with the flexibility that institutions and professional users need."
— Juha Viitala, CEO, Universal Digital
How USDU Works
USDU is designed for digital asset and derivatives settlement within the UAE. Unlike consumer-facing stablecoins, USDU is initially available to professional clients only, with plans to expand access as the regulatory framework matures.
Reserve Architecture
Each USDU token is backed 1:1 by US dollars held at Emirates NBD and Mashreq, two of the largest banks in the UAE. Mbank serves as a strategic reserve partner, ensuring diversified custody across multiple institutions.
Monthly Audits
USDU reserves undergo monthly independent audits conducted by a global accounting firm, providing transparent proof that every token in circulation is fully backed.
Settlement Use Case
USDU is designed for digital asset and derivatives settlement within the UAE. Professional clients can use it for institutional trading, OTC settlement, and cross-border value transfer.
Interoperability
Universal Digital is planning interoperability between USDU and AECoin, the first licensed AED stablecoin, enabling seamless USD-AED value transfer within the regulated UAE ecosystem.
PTSR: UAE's Stablecoin Regulation
The Payment Token Services Regulation (PTSR), published as Circular No. 2/2024 in June 2024, is the CBUAE's comprehensive framework for regulating stablecoins. It establishes clear rules for issuance, custody, and transfer of payment tokens in the UAE.
Issuance
Creating and issuing payment tokens. AED stablecoins require a full CBUAE license, while foreign currency stablecoins (like USDU) require registration.
Conversion
Converting payment tokens to fiat currency or other tokens. Licensed converters must maintain adequate liquidity to honor redemption requests.
Custody & Transfer
Safeguarding, storing, and transferring payment tokens on behalf of clients. Includes wallet services and payment processing.
Key PTSR Rules
Algorithmic stablecoins are prohibited
Privacy tokens are not allowed
Interest payments on stablecoins are banned
1:1 redemption guarantee required at all times
UAE Stablecoin Ecosystem
The UAE has rapidly built one of the most comprehensive stablecoin ecosystems in the world. From AED-pegged tokens to USD stablecoins, the country offers a regulated environment that attracts both local and international issuers.
PTSR Framework
CBUAE publishes Payment Token Services Regulation
AE Coin
First licensed AED-pegged stablecoin launches
Zand AED
First multi-chain AED stablecoin goes live
RAKBank AED
RAKBank receives preliminary AED stablecoin approval
USDU Launch
First CBUAE-registered USD stablecoin by Universal Digital
UAE Stablecoin Comparison
Compare all regulated stablecoins operating in the UAE, including their peg, issuer, regulatory status, and target audience.
| Name | Peg | Issuer | Regulator | Status |
|---|---|---|---|---|
| USDU | USD | Universal Digital | CBUAE (PTSR) | Registered |
| AE Coin | AED | AE Coin Foundation | CBUAE (PTSR) | Licensed |
| Zand AED | AED | Zand Bank | CBUAE (PTSR) | Licensed |
| RLUSD | USD | Ripple | ADGM FSRA | Approved |
| USDT | USD | Tether | ADGM FSRA | Accepted |
AED vs USD Stablecoins
The UAE ecosystem features both AED-pegged and USD-pegged stablecoins, each serving different purposes. AED stablecoins require a full CBUAE license while foreign currency stablecoins need registration.
AED Stablecoins
- Require full CBUAE license to issue
- Pegged to UAE Dirham (AED), which is itself pegged to USD
- Ideal for domestic payments and local commerce
- Examples: AE Coin, Zand AED, RAKBank AED
USD Stablecoins
- Require CBUAE registration (not full license)
- Pegged to US dollar, the world's reserve currency
- Ideal for international trade and digital asset settlement
- Examples: USDU, RLUSD, USDT (ADGM)
Global Stablecoin Market
The global stablecoin market has surpassed $308 billion in total market capitalization as of January 2026. Stablecoins have become critical infrastructure for crypto trading, DeFi, cross-border payments, and increasingly, traditional finance.
Total Market Cap
USDT and USDC dominate with over 80% combined market share. New regulated entrants like USDU are expanding the landscape.
Annual Volume
Stablecoin transaction volume exceeded $27 trillion in 2025, surpassing Visa and Mastercard combined.
Enterprise Adoption
USDC settlement on Solana and Ethereum
Stablecoin payments for global merchants
PYUSD stablecoin for payments
UAE's Competitive Advantage
While the US debates stablecoin legislation and the EU implements MiCA, the UAE has moved decisively with its PTSR framework. This regulatory clarity has positioned the country as a global leader in stablecoin innovation.
Regulatory Clarity
PTSR provides a clear, comprehensive framework for stablecoin issuance while ADGM and VARA handle broader crypto regulation. Three-regulator model covers all use cases.
Banking Integration
UAE banks like Emirates NBD, Mashreq, Zand, and RAKBank are actively participating in stablecoin issuance and custody, bridging TradFi and crypto.
Strategic Position
Located at the crossroads of Asia, Europe, and Africa, the UAE serves as a natural bridge for cross-border stablecoin payments and institutional digital asset settlement.
Digital Dirham (CBDC) vs Stablecoins
The UAE has been developing a Central Bank Digital Currency (CBDC) called the Digital Dirham. However, progress has been slower than the private sector stablecoin market, with private issuers filling the gap.
Digital Dirham (CBDC)
- -Issued directly by CBUAE
- -Cross-border focus (mBridge project with BIS)
- -Development delayed, timeline uncertain
- -Government-controlled monetary policy tool
Private Stablecoins
- -Issued by licensed private companies
- -Available now for trading and settlement
- -Multiple issuers create competition and innovation
- -Both AED and USD denominations available
Frequently Asked Questions
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