Universal Digital introduced USDU, presented as the first dollar-pegged stablecoin in the UAE with regulator and central bank approval.

Issuance and collateral

The company states that USDU is backed on a 1:1 basis with U.S. dollars held as reserves in commercial banks. Reserves have been placed with Emirates NBD, Mbank and Mashreq, according to the issuer's disclosure.

Universal Digital also announced that these reserve holdings will undergo monthly audits to confirm ongoing parity between issued tokens and fiat assets.

Integration and oversight

According to the company, the stablecoin is already connected to the central bank’s payment infrastructure, enabling settlement within national systems.

Regulatory clearance was cited as part of the launch, with authorities and the central bank listed among approving bodies in the issuer’s statement.

Market positioning

The project aims to provide a dollar-denominated digital instrument for local and regional payment flows and for participants requiring fiat stability on blockchain rails.

Universal Digital’s announcement highlights standard market controls such as custodial bank reserves and recurring audits as core elements of the stablecoin’s governance model.