Universal Digital launches USDU stablecoin as it clinches UAE central bank registration

Universal Digital has become a Foreign Payment Token Issuer after launching the UAE central bank-registered USDU stablecoin. The milestone marks significant progress in the UAE’s efforts to regulate its digital asset infrastructure and positions the USDU as the country’s first compliant digital asset for settlements.

According to Universal, its USDU stablecoin is the first and only token registered under the UAE’s Payment Token Services Regulation (PTSR) framework. The company is also regulated by the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM), providing a transparent and compliant settlement option for the UAE digital asset market.

Meanwhile, Universal can now enable payments for digital assets and digital-asset derivatives in the UAE, which may only be carried out in fiat or a Registered Foreign Payment Token. The company also has strategic banking relationships with Mbank, Emirates NBD, and Mashreq, revealing the institutional-grade backing behind its USDU stablecoin. 

Universal SEO says USDU sets new standard for regulated digital value

Juha Viitala, Universal’s senior executive officer (SEO), claims that the USDU sets a new standard for regulated digital value. He notes that being the first Foreign Payment Token registered by the UAE central bank and supported by other UAE banks provides institutional clients with clarity and confidence in USDU. Viitala further notes that his company is setting the foundation for a more efficient and transparent market for digital assets in the UAE and beyond.

Emirates NBD’s Anith Daniel also stated that his bank supports Universal’s introduction of the USDU in the UAE financial services sector. He emphasized that his bank’s vision for real-life solutions aligns with Universal’s goal of leading the country and the region in establishing a well-regulated ecosystem. 

“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.”

–Joel Van Dusen, Group head of corporate and investment banking at Mashreq

Meanwhile, Mohammed Khayata, the CEO of Mbank, believes that Universal’s efforts to build a regulated digital asset infrastructure align with his bank’s commitment to establishing the UAE’s future-ready digital payments ecosystem.

On the other hand, Ramez Rafeek, the general manager of AE Coin, adds that his company’s partnership with Universal contributes to the compliant usage of domestic digital assets regulated within the UAE’s financial framework.

The CEO of Aquanow, Phil Sham, further observed that the introduction of the USDU supports the expansion of regulated digital asset settlements. He also explained that the Aquanow platform is designed to provide institutions with secure, compliant market access.

Universal holds reserves backing USDU in onshore accounts

Universal disclosed that reserves backing the USDU stablecoin are held 1:1 in protected onshore accounts at Mbank, Emirates NBD, and Mashreq. It also revealed that a global accounting firm audits the banks independently each month.

According to Universal, this level of transparency aligns with global standards in regulated regimes, such as those in Japan and the EU, as well as a few U.S. frameworks. It has also partnered with AE Coin to power future USDU-AE Coin conversions for domestic settlements. The AE Coin was the first stablecoin to be licensed in the UAE.

Additionally, Universal has revealed that its partnership with Aquanow is part of its go-to-market strategy. Aquanow is registered with the Dubai Virtual Regulatory Authority (VARA) in the UAE and serves institutions across multiple markets.

The collaboration positions the USDU stablecoin for compliant adoption in the UAE and for rapid integration into the country’s digital asset ecosystem through Aquanow’s network of regulated service providers.

Universal further claims that the USDU is designed to connect with international digital asset markets beyond the UAE. The company says this enables institutions to move digital assets across globally regulated platforms. The USDU acts as a trusted link between the emerging digital assets economy and established financial systems. 

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