Abu Dhabi–primarily based Common Digital has launched USDU, the primary US greenback‑backed stablecoin to be registered by the Central Financial institution of the United Arab Emirates (CBUAE) as a Overseas Cost Token below the Cost Token Providers Regulation (PTSR).
In line with a launch shared with Cointelegraph, the registration makes Common the UAE’s first Overseas Cost Token Issuer and creates a transparent, regulated US greenback‑denominated settlement choice for digital belongings within the UAE.
A spokesperson from Common advised Cointelegraph that the PTSR had given a transition interval for fee token issuers to grow to be PTSR-compliant and that, amongst all of the USD stablecoins, USDU was the primary to acquire such registration.
USDU and the UAE’s fee token regime
Common is regulated by Abu Dhabi World Market’s Monetary Providers Regulatory Authority (FSRA) with permission to subject a fiat‑referenced token and is now concurrently registered with the CBUAE for fee‑token actions.
The Common spokesperson stated that this twin oversight imposed a “greater degree of self-discipline throughout reserve custody, governance, disclosures, and operational controls,” and that, for establishments, that distinction was materials as a result of “registration supplies a clearer compliance pathway for sure regulated use circumstances.”
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Beneath the PTSR, funds for digital belongings and digital asset derivatives within the UAE could solely be carried out in fiat or a Registered Overseas Cost Token, that means USDU is at present the one USD stablecoin that formally meets these necessities.
Reserve construction and banking companions
USDU is issued as an ERC‑20 token on Ethereum and is designed for institutional {and professional} use, with a conservative reserve construction and direct banking integration.
Reserves are totally backed 1:1 by US {dollars} held in safeguarded onshore accounts at Emirates NBD and Mashreq, with Mbank appearing as a strategic company banking associate and a world accounting agency offering month-to-month unbiased attestations.
The spokesperson stated that the banking companions supplied reserve custody and safeguarding, whereas the issuer remained answerable for assembly its obligations.
“Consumer confidence stems from the mix of regulated banking custody, recurring third-party attestations, and regulatory oversight,” the spokesperson stated.
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Institutional distribution by way of Aquanow
The agency can be working with AE Coin, an Emirate dirham-denominated stablecoin licensed by the Central Financial institution of the UAE, to allow future conversion between USDU and AE Coin for home settlement, aligning US greenback and dirham fee tokens throughout the similar regulatory perimeter.
Common has appointed Aquanow, regulated below Dubai’s Digital Belongings Regulatory Authority (VARA), as its international distribution associate to develop institutional entry to USDU and combine it into regulated digital asset infrastructure, together with on and off‑ramp and settlement use circumstances.
Whereas USDU can be utilized for UAE home fee of digital belongings and derivatives, it isn’t permitted for basic retail funds within the mainland, the place dirham‑denominated devices stay the usual.
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