Universal Digital Intl Limited (Universal) has launched USDU, the first USD-backed stablecoin to be registered by the Central Bank of the UAE (CBUAE) under its Payment Token Services Regulation (PTSR).
The move positions Universal as the first “Foreign Payment Token Issuer” registered by the CBUAE. The launch is significant as it establishes the country’s first fully regulated framework for USD-denominated digital asset settlement, a critical component for the maturation of the region’s crypto economy.
A compliant pathway for settlement
Under the UAE’s PTSR framework, payments for digital assets and derivatives can only be compliant if conducted in fiat currency or a “Registered Foreign Payment Token.” As USDU is currently the only token to hold this status, it effectively becomes the primary compliant settlement option for the market.
“USDU sets a new benchmark for regulated digital value,” said Juha Viitala, SEO 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.”
Institutional backing
The stablecoin is backed by reserves held 1:1 in safeguarded onshore accounts at major UAE financial institutions, specifically Emirates NBD and Mashreq, with Mbank acting as a strategic corporate banking partner. Universal has stated that these reserves will be independently attested monthly by a global accounting firm to ensure transparency.
Anith Daniel, group head of transaction banking services at Emirates NBD, commented: “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.”
Joel Van Dusen, group head of corporate and investment banking at Mashreq, added that the launch is a “timely step that supports this market’s maturation”.
Global distribution
To facilitate adoption, Universal has appointed Aquanow as its global distribution partner. Aquanow, which is regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), will support institutional access to USDU across multiple markets.
Furthermore, Universal revealed plans for future interoperability with AECoin, the first licensed AED stablecoin, to enable conversion for domestic settlement needs.
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