The Central Bank of the United Arab Emirates has approved Universal Digital to issue the US dollar stablecoin USDU.

PANews January 29 News, according to CoinDesk, the Central Bank of the United Arab Emirates has approved the country’s first USD-backed stablecoin, USDU, in accordance with its “Payment Token Service Regulations.” The stablecoin is issued and managed by the crypto company Universal Digital, which is regulated by the Abu Dhabi Global Market Financial Services Regulatory Authority. USDU is pegged 1:1 to the US dollar, with related funds held in safeguarded accounts at onshore banks such as the UAE National Bank and Mashreq Bank. This marks the first time a USD stablecoin has officially operated under a central bank payment regulatory framework. Aquanow has been appointed as the global distribution partner to provide access to USDU for institutions outside the UAE in permitted regions.