Universal Digital launches USDU, a UAE-registered USDU stablecoin, offering regulated settlement, transparency, and institutional-grade confidence across digital asset markets.
Universal Digital, headquartered in Abu Dhabi, has officially launched its US dollar stablecoin, USDU, in the UAE. Importantly, USDU is the first US dollar-backed stableCoin registered by the UAE central bank. Therefore, the launch mirrors the increased regulatory clarity for institutional digital asset settlements.
UAE Central Bank Registration Establishes a Regulatory Milestone
Universal Digital had confirmed that USDU is registered under the Payment Token Services Regulation framework. As a result, Universal is the first officially recognized Foreign Payment Token Issuer in the UAE. This approval has created a regulated settlement option for US dollar-denominated digital asset transactions.
NEWS: UAE central bank approves the country’s first USD-backed stablecoin, $USDU. pic.twitter.com/CToFRT9uHk
— CoinGecko (@coingecko) January 29, 2026
USDU is fully pegged to the US dollar at a constant 1:1 ratio. In addition, reserves are held in full, in liquid, and protected onshore accounts. These accounts are held at Emirates NBD, Mashreq and Mbank ensuring institutional grade custody.
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In addition, Universal Digital International Limited is subject to several regulatory authorities. It is regulated by the Central Bank of the UAE and ADGM Financial Services Regulatory Authority. Consequently, USDU sets compliance boundaries well within the definitions.
However, USDU is aimed specifically at professional and institutional clients. It cannot be utilized for general domestic retail payments within the UAE. Therefore, it is still focused on cross-border digital asset settlement efficiency.
Transparency is one of the core pillars of the USDU framework. Independent monthly reserve attestations are performed by an international accounting firm. Furthermore, smart contracts are thoroughly audited along with regular reports of public disclosures.
Distribution strategy also has contributed to international accessibility for USDU. Aquanow has been appointed as the global distribution partner other than the UAE. Through this partnership, institutional participants are provided with streamlined access throughout global digital asset markets.
The Central Bank registration has been seen by many as a market defining development. Industry observers say regulatory approval takes down the uncertainty surrounding institutional adoption. Consequently, USDU enhances the confidence in compliant stablecoin infrastructure.
Institutional Adoption Expands Alongside Real-World Crypto Use
Juha Viitala, Chief Executive Officer at Universal Digital emphasized the need for regulatory clarity. He said that institutional confidence is increased when stablecoins have direct Central Bank registration. Therefore, USDU creates a trusted settlement foundation for the region.
Leading UAE banks have also showed support in the initiative. Mashreq stressed on the increasing institutional demand for regulated digital value instruments. USDU is a timely contribution to the maturity of the market, according to Joel Van Dusen.
Compliant stablecoins are consistent with changing institutional risk frameworks, wrote Van Dusen, in the paper. As such, there is a continued movement towards regulated digital settlement tools. This trend reflects broader trends to transparent financial infrastructure.
USDU reserves are not only denominated in US dollars. Immediately Funds are protected in onshore banking accounts in the UAE banking. Mbank is a supporter of Universal Digital as an essential corporate banking partner.
Parallel developments indicate growing adoption of crypto in the UAE economy. Dubai Insurance recently introduced a crypto-enabled insurance wallet for insureds. This service enables premiums and claims with the use of digital assets that include stablecoins.
Notably, this is the first crypto-based insurance payment solution in the UAE market. Therefore, regulated digital assets are exiting trading and entering the realm of practical financial services. Together, these developments point to the rapid growth of UAE’s digital asset ecosystem.
