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UAE's central bank has approved a USD-backed stablecoin
['Ian Allison']
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UNDER EMBARGO UNTIL 29TH JANUARY, 10 AM GSTThe Central Bank of the United Arab Emirates (CBUAE) has approved the country’s first USD-backed stablecoin under the bank’s Payment Token Services Regulation (PTSR), according to a press release on Thursday.
Reserves backing USDU are held 1:1 in safeguarded onshore accounts at Universal’s banking partners: Emirates NBD and Mashreq, with Mbank.
The regulatory move means a USD stablecoin is now live and operational under a central bank payments regime, putting the UAE ahead of the U.S., EU, and much of Asia, the release stated.
“USDU sets a new benchmark for regulated digital value,” said Juha Viitala, senior executive officer 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.