Universal launches USDU, first UAE-registered USD stablecoin under PTSR
Universal Digital Intl Limited has launched USDU, describing it as the first UAE Central Bank–registered dollar stablecoin for compliant digital-asset settlement.
The issuer says USDU is registered as a Foreign Payment Token under the Central Bank’s Payment Token Services Regulation (PTSR), making it eligible for use in onshore digital-asset and derivatives settlement where fiat or a Registered Foreign Payment Token is required. UAE central bank sanctioned stablecoin appears throughout the announcement language and positioning.
What USDU is and how it’s backed
Universal says each USDU is backed 1:1 with U.S. dollar reserves held at Emirates NBD, Mashreq, and Mbank, with oversight from UAE regulators. The company is established in Abu Dhabi Global Market (ADGM) and regulated by the Financial Services Regulatory Authority (FSRA), aligning with the broader UAE approach to fiat-referenced tokens.
Why the PTSR matters
The PTSR defines payment tokens (stablecoins) and sets licensing/registration pathways, including a Foreign Payment Token Issuer Registration for entities outside the UAE. Registration enables compliant use cases such as settlement, conversion, and custody/transfer within the UAE’s regulated perimeter.
Partnerships and market integration
Universal has partnered with Aquanow licensed under Dubai’s Virtual Assets Regulatory Authority (VARA) to connect USDU with regulated service providers and accelerate adoption across trading and payments workflows.
Statement from the issuer
“USDU sets a new benchmark for regulated digital value … giving institutions the clarity and confidence they have been waiting for,” said Juha Viitala, Senior Executive Officer at Universal, emphasizing transparency and institutional readiness.
How the UAE central bank sanctioned stablecoin fits into settlement rules
Under the PTSR, payment tokens are virtual assets referencing fiat currency; the rulebook distinguishes AED-referenced tokens (requiring a license) and foreign-currency tokens (requiring registration). Universal positions USDU as the Registered Foreign Payment Token that institutions can use to settle digital-asset and derivatives transactions domestically.
Market backdrop and competitive signals
The UAE has been formalizing stablecoin oversight; industry coverage notes growing clarity around issuance, custody, and conversion services under PTSR. The registration of USDU follows broader regional moves to support on-chain payments and settlement infrastructure.
Context & Analysis
If USDU achieves liquidity among regulated venues, it could reduce friction for cross-venue settlement and treasury operations in the UAE, particularly for institutions seeking onshore, compliant USD exposure without relying on offshore stablecoins. Key watch items include: transparency of reserve attestations, breadth of banking partners, secondary-market liquidity, and interoperability with ADGM/DIFC market infrastructures.
Concluding Remarks
The launch of USDU under the PTSR framework represents a major regulatory milestone for USD-denominated stablecoins in the UAE. It is the first time a stablecoin has been introduced within an officially approved regulatory structure, which strengthens market confidence and credibility. This move can enhance the UAE’s crypto ecosystem and attract greater interest from global investors. Clear regulations also encourage innovation while supporting the safe and responsible adoption of digital assets across the financial sector.
USDU’s long-term success will depend on strong institutional adoption, transparent and verifiable reserves, and seamless integration with regulated crypto platforms and trading venues. If financial institutions actively use the stablecoin and maintain clear reserve reporting, trust will continue to grow. Partnerships with regulated exchanges can improve liquidity, increase usability, and support broader real-world applications.
FAQs
Q : What is USDU?
A : USDU is a U.S. dollar-backed stablecoin issued by Universal and registered by the UAE Central Bank as a Foreign Payment Token under PTSR.
Q : How is USDU backed?
A : The issuer says USDU is backed 1:1 with USD reserves held with Emirates NBD, Mashreq, and Mbank.
Q : Why does the PTSR matter?
A : It sets regulatory requirements for payment tokens and allows registered foreign tokens to be used for domestic digital-asset settlement.
Q : Who regulates Universal?
A : Universal states it is established in ADGM and regulated by the FSRA, and registered with the CBUAE for foreign payment tokens.
Q : How does the UAE central bank sanctioned stablecoin affect institutions?
A : It provides a compliant settlement option, potentially reducing friction for onshore digital-asset transactions.
Q : Is there an integration partner network?
A : Universal has partnered with Aquanow to connect USDU into regulated providers.
Q : Can USDU be used by retail users?
A : The issuer indicates professional and institutional use within the regulated perimeter; specifics depend on provider eligibility and licensing.
Facts
Event
Launch of USDU, a UAE Central Bank–registered USD stablecoin for compliant digital-asset settlementDate/Time
2026-01-29T00:00:00+05:00Entities
Universal Digital Intl Limited (ADGM/FSRA); Central Bank of the UAE (CBUAE); Emirates NBD; Mashreq; Mbank; Aquanow (VARA)Figures
1:1 USD reserve backing (issuer-reported)Quotes
“USDU sets a new benchmark for regulated digital value.” — Juha Viitala, Senior Executive Officer, UniversalSources
Zawya press release (Universal) https://www.zawya.com/en/press-release/companies-news/universal-launches-uaes-first-central-bank-registered-usd-stablecoin-w34honi9 ; The Block — https://www.theblock.co/post/387501/uae-central-bank-sanctioned-us-dollar-stablecoin-launches-digital-asset-settlement