The USDU token operates inside a bank-regulated settlement framework under the Payment Token Services Regulation.
The Central Bank of the United Arab Emirates has approved USDU, the country’s first USD-backed stablecoin. The approval came on Thursday under the Payment Token Services Regulation. Notably, the stablecoin is backed one-to-one by the US dollar and operates under direct central bank oversight.
This is the first time a dollar-denominated stablecoin has received formal approval from the UAE central bank. The token is now part of the country’s regulated payment system rather than sitting outside the banking framework.
Universal launches USDU – the UAE’s first Central Bank-registered USD stablecoin.
Issued by an FSRA-regulated entity in @ADGlobalMarket, USDU is supported by banking partners @EmiratesNBD_AE , @MashreqTweets, and @almaryahbank with global distribution via @aquanow, and alignment… pic.twitter.com/LisFKmBMxd
— Universal (@Universal_USDU) January 29, 2026
It is also important to note that Aquanow, a crypto financial services provider, has been appointed as the global distribution partner. A press release said that the firm will help in “expanding institutional access to USDU across multiple markets.”
Regulatory Structure and Issuance Model
USDU is issued and managed by Universal Digital. The firm operates under the Financial Services Regulatory Authority at Abu Dhabi Global Market. With this approval, Universal Digital has become the first Foreign Payment Token Issuer registered by the UAE central bank.
USDU is registered as a foreign payment token. This allows a USD-pegged digital asset to function inside a bank-regulated settlement environment. The framework gives legal clarity on issuance, custody, and reserve handling.
Moreover, USDU reserves are held fully in US dollars while funds sit in safeguarded on-shore accounts at Emirates NBD and Mashreq. The backing remains one-to-one at all times. Also, Mbank supports Universal Digital as a core corporate banking partner.
“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 Mashreq exec Joel Van Dusen.
Parallel Expansion in Real-World Crypto Use
At the same time, Dubai Insurance has launched a crypto insurance wallet. Policyholders can now pay premiums and receive claims in digital assets, including stablecoins. This is the first service of its type in the UAE insurance market.
📈🚨BREAKING🚨📈
Dubai Insurance has launched a crypto wallet that lets policyholders pay premiums and receive claims settlements in digital assets through Zodia Custody, marking the first such offering in the UAE insurance sector.
It’s coming and we are still SO early!!… pic.twitter.com/2924aPaJWr
— LiaSue ☄️ (@TruthTrencher) January 29, 2026
The wallet runs on infrastructure from Zodia Custody, a crypto custody firm backed by Standard Chartered. The setup focuses on institutional security and regulatory alignment.
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