Dubai recognizes USDC and EURC as the first stablecoins under a token regime
The Dubai Financial Services Authority has approved the first stablecoins under its cryptocurrency token regime: USDC and EURC.
The Dubai Financial Services Authority (DFSA) has formally certified Circle’s stablecoins USD Coin (USDC$0.9999) and EURC (EURC) as recognised tokens under the authority’s crypto regime, making them the first stablecoins allowed under the regime.
Because of this new status, businesses in the Dubai International Financial Centre (DIFC) can now include the two stablecoins into a variety of digital asset applications, such as payments, treasury management, and services.
The DIFC, founded in 2004, is a financial district and free economic zone that services businesses in the Middle East, Africa, and South Asia. According to the DIFC, the district has almost 7,000 active enterprises, a 25% increase over 2023. Only recognised cryptocurrency tokens are permitted for use and operation across the area.
USDC and EURC have been approved as recognised tokens, adding to the UAE’s greater regulatory clarity. In 2024, UAE policymakers enacted a set of laws and licensing structures that have shaped the country’s budding cryptocurrency business.
In June, the Central Bank of the UAE approved the creation of a new mechanism for overseeing and licensing stablecoins. In June, Dubai revised its crypto token fund guidelines, allowing both domestic and foreign funds to participate in digital assets.
While Circle’s stablecoins may be the first recognised by the DFIC, Circle’s major competitor, Tether, is claiming other regions of the UAE. In December 2024, Tether’s US dollar-pegged stablecoin, USDt USDT$0.9998, was accepted as a virtual asset in Abu Dhabi. Tether also brings USDT into the UAE real estate market by partnering with Reelly Tech, a UAE real estate portal. Circle has been actively minting additional USDC. Between January 8 and February 10, the market capitalisation of the popular stablecoin increased by 23.4%, from $45.6 billion to $56.3 billion. USDC’s market capitalisation is $57.2 billion as of February 24. However, DeFiLlama reports that Tether’s USDT dominance continues at a high of 63%.
The increase in stablecoin adoption has been one of the most prominent stories of the current crypto bull run. The stablecoin market capitalisation has risen by almost $100 billion since December 2023.
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