UAE central bank approves first USD-pegged stablecoin, USDU

The Central Bank of the UAE (CBUAE) has officially approved the dollar-pegged stablecoin USDU, CoinDesk reported. This marks the first USD-based stablecoin to be sanctioned in the UAE under the central bank's Payment Token Services Regulation (PTSR). The stablecoin will be issued and operated by Universal Digital, a firm supervised by the Abu Dhabi Global Market's (ADGM) Financial Services Regulatory Authority (FSRA). Its reserves will be held on a 1:1 basis in accounts at UAE-based banks, including Emirates NBD, Mashreq, and M Bank.