Abu Dhabi’s Universal Digital launches CBUAE‑registered USD stablecoin USDU for institutional settlement

Universal Digital, an Abu Dhabi‑based firm, has launched USDU — the first US dollar–backed stablecoin registered with the Central Bank of the UAE (CBUAE) under the Payment Token Services Regulation (PTSR). USDU is an ERC‑20 token on Ethereum targeted at institutional and professional users and now sits under a dual regulatory framework with oversight from both CBUAE and Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA). Reserves are held 1:1 in US dollars in safeguarded onshore accounts at Emirates NBD and Mashreq, with Mbank as a corporate banking partner and monthly independent attestations from a global accounting firm. Distribution and institutional on‑/off‑ramp integration will be handled by Aquanow (regulated by Dubai’s VARA). Under PTSR, UAE digital‑asset payments must use fiat or a registered foreign payment token, making USDU the first compliant USD settlement token for regulated digital‑asset and derivatives flows in the UAE. USDU is not intended for general retail use on the UAE mainland, where dirham‑denominated instruments remain primary; Universal plans future technical and regulatory work to enable conversion and settlement with AE Coin (a dirham‑pegged stablecoin). Key implications for traders: regulated onshore USD liquidity for UAE crypto markets, stronger institutional custody and compliance standards, limited retail circulation domestically, and potential increased use of USDU in regulated institutional settlements and derivatives clearing.