Circle Secures UAE Approval, Expands USDC Stablecoin Reach

Circle, the issuer of USDC, the world’s second-largest stablecoin, has received In-Principle Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This approval allows Circle to operate as a money services provider in the UAE, marking a significant step towards full licensing in the region. The move positions Circle strategically in a region that is rapidly advancing in digital finance, while many other parts of the world are still navigating the complexities of regulatory frameworks.

Circle’s expansion into the Middle East is a calculated and strategic move. The UAE, particularly Abu Dhabi, has become a hub for crypto and fintech innovators due to its clear regulations, forward-looking approach, and strong appetite for Web3 infrastructure. This environment supports the growth of digital finance and positions Abu Dhabi as a launchpad for the next phase of financial innovation. Jeremy Allaire, Co-Founder, Chairman, and CEO of Circle, highlighted that the UAE is paving the way for responsible innovators to build the internet financial system. Circle aims to establish a long-term presence in a region where regulation supports growth rather than hindering it.

This expansion comes at an opportune time for Circle. Recently, the company launched a cross-border payments network to enhance the utility of USDC, which now has a circulating supply of $62 billion, reflecting a significant increase. Additionally, Circle has filed for a U.S. IPO, indicating a broader strategic momentum. The Middle East move aligns with Circle’s global strategy and its commitment to expanding the use of stablecoins.

To further strengthen its presence in Abu Dhabi, Circle has partnered with Hub71. This collaboration will involve programs through ADGM’s digital regulatory sandbox, providing founders with access to grants, institutional connections, hackathons, and mentorship. Circle will also join Hub71’s Digital Assets specialist ecosystem, contributing its stablecoin expertise to a community of over 500 startups and VC partners. Ahmad Ali Alwan, CEO of Hub71, emphasized that Circle’s expertise will enrich the digital assets ecosystem, offering founders greater access to resources, mentorship, and growth opportunities. This partnership aims to drive the adoption of leading digital financial infrastructure, supporting startup growth and the evolution of Web3 and digital finance from Abu Dhabi.

Circle’s global stablecoin strategy is evident in its compliance with the EU’s MiCA regulations and its recent launch of USDC in Japan through a partnership with SBI Holdings. The stablecoin market, with $230 billion in circulation, is growing rapidly and is no longer a niche market. Stablecoins are increasingly being used for real-world applications such as payments and remittances, offering alternatives to traditional banking systems. By establishing a presence in Abu Dhabi, Circle is demonstrating confidence in the region’s readiness for a stablecoin era, where regulation and innovation can coexist and thrive.