Abu Dhabi Universal Digital has launched USDU, a U.S. dollar-based stablecoin, after completing registration with the UAE central bank, Cointelegraph reported on Jan. 29 local time.
Cointelegraph said USDU is the first foreign payment token in the UAE to comply with the central bank’s payment token service rules and to be officially registered as a stablecoin.
Abu Dhabi Universal Digital is under dual regulation by the Abu Dhabi Global Market’s Financial Services Regulatory Authority and the central bank. This requires it to meet standards for reserve management, governance, disclosures and operational controls. USDU is issued as an Ethereum-based ERC-20 token and is fully collateralised 1:1 with U.S. dollars held in onshore accounts at Emirates NBD and Mashreq Bank. Users can be assured of stability through regulated bank custody, monthly external audits and oversight by authorities.
Settlement of digital assets and derivatives in the UAE is permitted only in fiat currency or registered foreign payment tokens, and USDU is the only stablecoin that currently meets the requirement, Cointelegraph said.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr