UAE-approved ‘dollar stablecoin’ issued…value pegged to reserves at state-owned banks
Summary
- Universal Digital International (UDI) said it has issued USDU, the first dollar stablecoin approved by the UAE Central Bank.
- It said USDU’s value is pegged 1:1 to U.S. dollar reserves held on deposit at UAE state-owned banks including Emirates NBD.
- UDI said it has entered into a partnership with Aquanow, which is regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), to lay the groundwork for a more transparent and efficient digital-asset market.
A dollar stablecoin approved by authorities in the United Arab Emirates (UAE) has been launched.
According to The Block on the 29th (local time), Universal Digital International (UDI) announced that it had issued ‘USDU,’ the first dollar stablecoin approved by the UAE Central Bank, on the day. UDI explained that “USDU is the first stablecoin registered under the UAE’s Payment Token Services Regulation (PTSR).”
USDU’s value is pegged 1:1 to U.S. dollar reserves held on deposit at UAE state-owned banks including Emirates NBD. To operate the stablecoin, UDI also entered into a partnership with Aquanow, which is regulated by Dubai’s Virtual Assets Regulatory Authority (VARA).
Juha Viitala, a senior executive at UDI, said, “USDU is the first foreign payment token registered with the UAE Central Bank,” adding that it “will lay the groundwork for building a more transparent and efficient digital-asset market.”
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
