Universal Launches USDU, the UAE’s First Registered USD Stablecoin

Universal Digital Intl Limited (“Universal”), regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), has become the first Foreign Payment Token Issuer registered by the Central Bank of the UAE (CBUAE). Alongside this milestone, the firm announced the launch of USDU, the first USD-backed stablecoin registered as a Foreign Payment Token under the UAE’s Payment Token Services Regulation (PTSR).

The development marks a major step in the UAE’s regulated digital-asset framework, positioning USDU as the country’s first compliant USD-denominated settlement asset for digital-asset transactions.

The launch of USDU underscores a point Unlock Blockchain made earlier: the UAE’s regulatory design was always pointing toward an officially recognized USD settlement token. USDU’s registration is not a surprise, it is the outcome the framework was built to produce.

Establishing a Compliant USD Stablecoin Pathway in the UAE

Under the PTSR framework, payments for digital assets and digital-asset derivatives in the UAE may only be conducted using fiat currency or a Registered Foreign Payment Token. With USDU currently the first and only token registered under this regime, it provides a clear and compliant settlement mechanism for the UAE’s digital-asset market.

This effectively establishes the UAE’s first formal USD stablecoin pathway for compliant digital-asset settlement—an area that many global jurisdictions are still in the process of defining.

Institutional Banking Backing and Reserve Transparency

The announcement also highlights Universal’s strategic banking relationships with Emirates NBD, Mashreq, and Mbank, reinforcing the institutional foundation behind USDU and signaling growing confidence from leading regional banks.

USDU reserves are held 1:1 in safeguarded onshore accounts at Emirates NBD and Mashreq, with Mbank acting as a strategic corporate banking partner. Reserves are independently attested on a monthly basis by a global accounting firm, aligning USDU with emerging international standards seen in regulated markets across the EU, Japan, and select U.S. frameworks.

Universal is also collaborating with AECoin, the UAE’s first licensed AED stablecoin, to enable future USDU–AECoin conversion for domestic settlement use cases.

Regulated Distribution and Market Integration

Universal’s go-to-market strategy includes a partnership with Aquanow, a global digital-asset infrastructure provider regulated in the UAE under Dubai’s Virtual Assets Regulatory Authority (VARA). The collaboration positions USDU for compliant distribution and rapid integration into the UAE’s broader digital-asset ecosystem through Aquanow’s established institutional network.

“USDU sets a new benchmark for regulated digital value,” said Juha Viitala, CEO of Universal. “Being the first Foreign Payment Token registered by the UAE Central Bank – and supported by leading UAE banks – gives institutions the clarity and confidence they have been waiting for. It lays the groundwork for a more transparent and efficient digital-asset market in the UAE and beyond.”

Strong Support from Regional Financial Institutions

Anith Daniel, Group Head of Transaction Banking Services at Emirates NBD, said:
“We are pleased to support Universal’s introduction of USDU to the UAE’s financial services ecosystem. We continue to support solutions that bolster the nation’s rapidly developing, well-regulated digital-asset infrastructure in line with our vision to be a digital leader in the region.”

“We see growing institutional interest in regulated digital-value instruments, and Universal’s introduction of USDU is a timely step that supports this market’s maturation,” said Joel Van Dusen, Group Head of Corporate and Investment Banking at Mashreq.

“Universal’s work in building regulated digital-value infrastructure closely aligns with Mbank’s commitment to enabling secure, compliant, and future-ready financial innovation that supports the UAE’s evolving digital-payments ecosystem,” said Mohammed Wassim Khayata, CEO of Mbank.

“Our collaboration with Universal contributes to the development of approved mechanisms that support compliant, domestic digital-asset usage within the UAE’s regulated financial framework,” said Ramez Rafeek, General Manager of AE Coin.

“Universal’s introduction of USDU underscores the continued maturation of regulated digital settlement assets. Aquanow’s platform is built to support this evolution by providing institutions with secure, compliant market access, and we are pleased to support the distribution of USDU,” said Phil Sham, CEO of Aquanow.

Bridging Domestic and Global Digital Settlement

Beyond the UAE, USDU is designed to connect with international digital-asset markets, enabling institutions to move regulated digital value across global platforms where permitted by local regulation. Its supervised structure and institutional design position USDU as a trusted bridge between traditional financial systems and the evolving digital-asset economy.

Internationally, Universal is continuing to build an expanded ecosystem around USDU, working with banks, market operators, and technology partners to support regulated digital settlement use cases, including institutional trading venues and future interoperability initiatives.

Together, these developments reinforce the UAE’s emergence as a leading jurisdiction for regulated digital finance, offering one of the world’s first operational models for compliant USD-backed digital settlement at scale.