PANews reported on January 29th that, according to CoinDesk, the Central Bank of the UAE has approved USDU, the country's first US dollar-backed stablecoin, under its Payment Token Services Regulation. The stablecoin is issued and managed by Universal Digital, a crypto company regulated by the Abu Dhabi Global Markets Financial Services Regulatory Authority.

USDU is pegged 1:1 to US dollar reserves, with the funds held in secured accounts at onshore banks such as the National Bank of the UAE and Mashreq Bank. This marks the first time a US dollar stablecoin has officially operated under a central bank payment regulatory framework. Aquanow has been appointed as the global distribution partner, providing access to USDU to institutions outside the UAE in licensed regions.