Universal Digital, an Abu Dhabi-based firm, launched the first dollar-backed stablecoin registered with the Central Bank of the UAE. The coin, registered under the denomination USDU, is geared towards regulated institutional settlement and features onshore reserve custody and dual supervision by UAE financial regulators.
Universal Digital registered its USDU stablecoin with the Central Bank of the UAE as a foreign payment token. The company is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market.
This dual supervision model was described by Universal CEO Juha Viitala as imposing “a high level of discipline in reserve custody, governance, disclosures, and operational controls.” The stablecoin is pegged 1:1 to the US dollar, with reserves held in onshore accounts at Emirates NBD and Mashreq, and with Mbank as the corporate banking partner.
Regarding transparency, the currency’s reserves are independently attested by a global accounting firm specifically designed to address common institutional concerns about backing and redeemability.
Intended use, partners and market fit
USDU is designed for institutional settlements and cross-border transactions within the UAE’s regulated digital asset perimeter. Under the PTSR, payments for digital assets and derivatives in the UAE must be settled in fiat currency or a Registered Foreign Payment Token, making USDU the only USD-denominated stablecoin that currently meets these regulatory requirements.
Aquanow, a firm regulated by Dubai’s VARA, will act as USDU’s global distribution partner, aiming to expand access to on-ramp and off-ramp services, as well as custody solutions. This approach seeks to facilitate adoption for both institutional participants and users operating between the traditional financial system and the crypto ecosystem.
In parallel, the onshore integration relies on monthly attestations and the custody of funds in UAE banks, seeking to align the token with institutional treasury standards. Furthermore, Universal is working alongside AE ​​Coin, the authorized dirham stablecoin, to enable future conversions geared toward domestic settlement, strengthening interoperability within the local market.
The issuer has clarified that USDU is not intended for general retail payments within mainland UAE, focusing instead on regulated institutional flows.
Investors and treasury teams will likely monitor the adoption, on-chain liquidity, and planned conversion of AE Coin as immediate tests of USDU’s practical utility for cross-currency settlement.
