Universal Digital launches first UAE-registered US dollar stablecoin
An Abu Dhabi fintech firm has launched the first US dollar-backed stablecoin to be officially registered by the Central Bank of the United Arab Emirates under the country’s new payment-token rules.
Universal Digital said its token, called USDU, is fully backed 1:1 by US dollars and approved as a foreign payment token under the UAE’s Payment Token Services Regulation. The registration allows banks, brokers and other regulated institutions to use the coin for digital asset payments and settlements within a clear legal framework.
The company said the new stablecoin is aimed at institutional and professional investors rather than retail users and will not be used for everyday consumer payments.
USDU is issued on the Ethereum blockchain and backed by cash reserves held in safeguarded accounts with local banks, including Emirates NBD and Mashreq. An independent accounting firm will provide monthly checks to confirm the reserves.
Universal said the central bank registration gives financial institutions a compliant way to settle digital asset trades in US dollars inside the UAE. While global stablecoins are widely used, they are not registered under the country’s payment-token regime.
The company is also working with local partners to expand distribution and integrate the token into regulated trading and payment systems.
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