UAE Approves First Central Bank‑Registered USD Stablecoin

Core Insights - Universal launched USDU, the first USD-backed stablecoin registered by the UAE's central bank, amidst a global push for clearer regulations on stablecoins [1][2] - The approval of USDU by the UAE central bank signifies a move towards trust in digital currencies, as it allows for legal use in the UAE's financial system [1][4] Group 1: USDU Overview - USDU is a digital token designed to maintain a value close to $1, functioning like a digital cashier's check on blockchains [2] - It is issued by Universal Digital Intl Limited, regulated in Abu Dhabi, and registered as a "Foreign Payment Token" for institutional use in digital-asset trades [2][3] Group 2: Regulatory Context - UAE regulations require crypto payments and derivatives to be settled in fiat currency or an approved token, which USDU now satisfies [3] - The UAE aims to position itself as a regulated crypto hub, adopting stablecoins with tighter oversight compared to other regions [5] Group 3: Trust and Compliance - Universal claims that USDU holds dollars 1:1 in onshore UAE bank accounts, with monthly attestations to ensure trust in reserves [4][5] - This model is similar to how other large stablecoin issuers explain their reserve strategies, enhancing user confidence [4][5] Group 4: Target Market and Use Cases - USDU is targeted at banks, exchanges, and large trading desks, focusing on compliance rather than speculative trading [6] - Aquanow serves as the global distribution partner, facilitating conversions between USDU and local currencies, supporting domestic settlements [6]