UAE Central Bank Approves USDU: First USD-Backed Stablecoin
Why in the news
The UAE’s central bank cleared a dollar-backed stablecoin, USDU, as part of regulating digital assets and blockchain payments.
Key facts
- Issuer: Universal Digital, a crypto company under ADGM (Abu Dhabi Global Market) oversight.
- The issuer is the first overseas payment token issuer the central bank has registered.
- A stablecoin like this is pegged one-to-one with the dollar to keep prices steady.
| Feature | Detail |
|---|---|
| Backing | Equal US dollar reserves for each token |
| Regime | Payment Token Services Regulation |
| Settlement | Blockchain-based, faster and cheaper |
| Uses | Cross-border transfers, trade settlement, remittances |
Exam angle
- Token USDU; issuer Universal Digital; peg 1:1 to USD.