The United Arab Emirates its first U.S. dollar-pegged stablecoin under a formal central bank framework, marking a new step in the country’s approach to regulating digital payment tokens. The Central Bank of the UAE registered a USD-backed stablecoin issued by Universal Digital Intl Limited, under the Payment Token Services Regulation. The approval makes USDU the first stablecoin recognized by the central bank as a registered foreign payment token, according to the issuer. Central bank framework defines scopeThe Payment Token Services Regulation sets rules for issuance, reserve backing, and governance of payment tokens. Under the framework, foreign payment tokens can be registered if they meet disclosure, custody, and compliance standards defined by the central bank.