The Dubai Financial Services Authority (DFSA) has taken a significant step in advancing cryptocurrency adoption by officially recognizing USD Coin (USDC) and EURC as the first approved stablecoins under its crypto token regime. This landmark decision, announced on February 24, 2025, paves the way for increased integration of digital assets within the Dubai International Financial Centre (DIFC), a leading financial hub in the Middle East.
Circle Internet Group, Inc., the issuer of USDC and EURC, revealed that the DFSA’s approval allows over 6,000 firms operating within the DIFC to incorporate these stablecoins into various financial applications, including payments, treasury management, and digital asset services. This move is expected to bolster Dubai’s position as a forward-thinking jurisdiction for cryptocurrency and blockchain technology.
The recognition of USDC and EURC as approved tokens comes as part of Dubai’s broader strategy to embrace digital assets and position itself as a global crypto hub. In 2024, the United Arab Emirates introduced a series of laws and licensing frameworks to shape the country’s burgeoning crypto sector, including a system overseen by the Central Bank of the UAE to license and regulate stablecoins.
Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, emphasized the significance of this approval, stating, “The DFSA’s approval of USDC and EURC as recognized crypto tokens within the DIFC is yet another validation of our constructive approach to regulatory and policy engagement. As the first stablecoins to receive this designation, USDC and EURC continue to set the global standard for transparency, compliance, and utility”
This development in Dubai follows Circle’s recent regulatory achievements in other jurisdictions. The company has positioned itself as the first major global stablecoin issuer to comply with the European Union’s Markets in Crypto Assets (MiCA) regulations and Canada’s new listing rules. These milestones underscore Circle’s commitment to global stablecoin oversight and its efforts to strengthen trust, compliance, and adoption worldwide.
The approval of USDC and EURC in Dubai is particularly noteworthy given the growing competition among stablecoin issuers in the region. In December 2024, Tether’s USDT received approval as a recognized virtual asset in Abu Dhabi, another financial free zone in the UAE. Tether has also been making inroads into the UAE real estate market through a partnership with Reelly Tech, a local real estate platform.
The DFSA’s approval of USDC and EURC is expected to have far-reaching implications for the crypto ecosystem in Dubai and beyond. By providing regulatory clarity and support for stablecoins, the DIFC is likely to attract more blockchain and fintech companies to the region. This could lead to increased innovation, job creation, and economic growth within the digital asset sector.
Moreover, the integration of regulated stablecoins into the DIFC’s financial infrastructure may facilitate more efficient cross-border transactions and remittances. This aligns with Circle’s recent partnership with LuLu Financial Holdings, one of the largest financial services conglomerates in the region, to enhance remittances and cross-border payments using USDC.
It’s important to note that while this approval marks a significant milestone for stablecoin adoption in Dubai, it comes with certain limitations. The Central Bank of UAE’s stablecoin payments regulation, released in 2024, stipulates that only AED-backed stablecoins can be used for purchasing products and services within the UAE. However, UAE-regulated stablecoins like USDC and EURC can be used for purchasing virtual assets and can be regulated by entities such as the DIFC, Abu Dhabi Global Market (ADGM), or the Virtual Assets Regulatory Authority (VARA).
As the crypto landscape continues to evolve, the recognition of USDC and EURC by the DFSA represents a crucial step towards mainstream adoption of digital assets in the Middle East. It demonstrates Dubai’s commitment to fostering innovation while maintaining regulatory oversight, potentially serving as a model for other jurisdictions seeking to balance technological advancement with financial stability.
The coming months will likely reveal the full impact of this decision on the DIFC’s financial ecosystem and the broader crypto market. As more companies begin to integrate USDC and EURC into their operations, we may see an acceleration of blockchain-based financial services and increased collaboration between traditional finance and the crypto sector in the region.
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