USDC stablecoin issuer receives initial approval in UAE

The issuer of USDC, the second-biggest stablecoin globally, Circle Internet Group, has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the ADGM in the UAE to operate as a money services provider.

A money services business (MSB) is an entity that deals in transmitting, converting, or exchanging money.

The initial approval will allow Circle to offer compliant digital finance solutions across the UAE once it is fully licensed. Circle seeks to secure a Financial Services Permission (FSP) under ADGM’s progressive regulatory framework.

Commenting on the recent in-principle approval , Jeremy Allaire, co-founder, chairman and CEO of Circle, noted that the UAE was paving the way for responsible innovators to build the internet financial system.

He stated, “This IPA from ADGM advances our strategy to establish deep roots in markets embracing the onchain economy, creating new pathways for investment and innovation in the region. It also underscores Circle’s enduring commitment to global stablecoin oversight, strengthening trust, compliance, and adoption worldwide, while laying a resilient foundation for the internet financial system.”

Circle’s foray into the UAE started in 2024 with a registered entity

In December 2024, Circle Internet Group, Inc., announced the incorporation of an entity in the ADGM, a key milestone in its strategic expansion into the Middle East and Africa. Circle has also entered into a partnership with LuLu Financial Holdings (‘LuLuFin’) and its affiliates, one of the largest financial services conglomerates in the region, to facilitate remittances and cross-border payments with USDC, Circle’s digital dollar. 

“We are excited about Circle’s contribution to ADGM’s dynamic ecosystem leveraging their regulatory-first approach, commitment to innovation, and global credibility in the stablecoin space,” said Arvind Ramamurthy, Chief of Market Development at ADGM.

He noted that ADGM looks forward to working with Circle as they expand their operations and advance digital finance in the UAE.

Dante Disparte, Chief Strategy Officer Head of Global Policy and Operations at Circle. stated, “Circle continues to demonstrate how trusted infrastructure, built on rigorous compliance and transparency, can advance the safe adoption of stablecoins worldwide. This moment reinforces our belief that regulation is not a constraint on innovation, but its most powerful catalyst.”

UAE FAB is working on issuing an AED stablecoin

The announcement comes a day after FAB in the UAE announced it would be issuing an AED stablecoin. First Abu Dhabi Bank (FAB), IHC, and ADQ sovereign investor will be launching a new AED-backed stablecoin regulated by the UAE Central Bank.

The AED stablecoin will be issued by FAB. The trio aim to make payments locally and internationally easier. The AED stablecoin is designed to enable payment for the world where identity, governance and value flow freely, securely, and verifiably.

Tether was the first global stablecoin issuer to announce it was seeking a license in the UAE from the central bank to launch its AED stablecoin.

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