Universal launched USDU, the first USD-backed stablecoin registered by the central bank of the UAE. The news didn’t move crypto prices overnight, but it came at a time of global pressure to bring stablecoins under clear rules. Regulators want digital dollars that behave like bank money and resemble checks.
For everyday users, this story is about trust. The government regulator is now signing off on the crypto dollar for use in the UAE financial system.
UAE approves $USD a stablecoin
Central bank of UAE (CBUAE) approved/registered $USDUa $USD-backed stablecoin from Universal Digital, as a foreign payment token under the Token Payment Services Regulation.#UAE #Stablecoins pic.twitter.com/a92M9vDDu8
— 99Bitcoins (@99BitcoinsHQ) January 29, 2026
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What exactly is USDU and who is it for?
USD stablecoin is a digital token designed to maintain a value close to $1. Think of it as a digital cashier’s check that goes through blockchains instead of going through banks.
Universal introduces USDU – the first USD stablecoin registered by the Central Bank of the UAE.
Issued by an entity regulated by the FSRA in @ADGlobalMarketUSDU is supported by our banking partners @EmiratesNBD_AE , @MashreqTweetsagain @almaryahbank with global distribution through @akwaziand alignment… pic.twitter.com/LisFKmBMxd
— Universal (@Universal_USDU) January 29, 2026
USDU is issued by Universal Digital Intl Limited, a company controlled in Abu Dhabi. The UAE central bank has registered the USDU as a “Foreign Payment Token,” allowing institutions to legally use it to pay for digital asset transactions.
That’s important because UAE regulations require crypto and derivative payments to be paid in fiat currency or an authorized token. The USDU now fits that box.
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Why UAE Approval Is Changing the Stablecoin Discussion
Stablecoins often fail because users don’t trust repositories. Universal says USDU holds 1:1 dollars in UAE bank accounts at Emirates NBD and Mashreq, with monthly proofs.
Let your stablecoins do the work for you. pic.twitter.com/Krwo251kH2
– Binance (@binance) January 29, 2026
In plain terms, that’s like promising that every gift card is backed by real money at the register, and letting an auditor check it every month. This approach shows how some major issuers describe their stablecoin reserve strategies.
The UAE also positions itself as a regulated crypto hub. This move follows regional examples of regulatory stablecoin adoption, but with stricter oversight.
How USDU Can Be Used in Real Life
USDU is not designed for meme trading or quick turnarounds. It targets banks, exchanges, and large trading desks that require clean compliance.
Aquanow acts as a global distribution partner, helping institutions convert between USDU and local options like AECoin. That supports domestic settlement without moving money offshore.
For starters, the takeaway is simple. Regulated stablecoins are becoming pipelines, not hype.
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The post UAE Approves First Central Bank‑USD Registered Stablecoin appeared first on 99Bitcoins.
