Dubai has taken a significant step in the adoption of digital assets by officially recognizing USDC and EURC as the first approved stablecoins under the Dubai Financial Services Authority (DFSA) crypto token regime.
With this approval, financial institutions and digital asset firms operating within the Dubai International Financial Centre (DIFC) can now integrate USDC and EURC into various digital asset services, including payments, treasury management, and broader financial applications.
- Announcement by Patrick Hansen, Senior Director at Circle focused on EU strategy and policy. Source.
Stablecoins serve as an essential bridge between traditional finance and digital assets, enabling more efficient cross-border transactions, on-chain settlements, and DeFi integrations. The move could also drive increased remittance flows through UAE-based platforms, making Dubai a key corridor for global digital payments.
The DIFC is home to over 6,000 firms and provides a regulated environment for businesses to operate, ensuring legal clarity in digital finance. Last year, the institution granted Binance a full VASP license, allowing the exchange to offer services for retailers and institutions.
This recognition follows Circle’s recent success in securing regulatory approvals in the European Union under MiCA and compliance with Canada’s stablecoin listing rules.
USDC and EURC’s Approval To Drive Adoption
According to Dante Disparte, Chief Strategy Officer at Circle, this milestone validates the company’s commitment to working constructively with regulators worldwide. He emphasized that USDC and EURC’s approval will help drive adoption, making digital dollars and euros more accessible to businesses, developers, and financial institutions globally.
Dubai’s move aligns with the broader UAE regulatory push to structure a clear framework for digital assets. In 2024, the Central Bank of the UAE implemented new stablecoin licensing and oversight policies, paving the way for more structured adoption. While Circle’s stablecoins are the first to receive this designation in DIFC, competitors like Tether (USDT) have also been expanding their footprint in other UAE regions, including Abu Dhabi.
