Circle Receives Abu Dhabi Regulatory Nod for USDC Stablecoin

Circle, the issuer of the USDC stablecoin, has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). This approval brings Circle one step closer to obtaining a full Financial Services Permission (FSP) license, which will allow it to operate as a regulated money services provider in the United Arab Emirates.

Jeremy Allaire, Circle’s Co-Founder and CEO, highlighted the significance of this regulatory nod, stating that it advances the company’s strategy to establish a strong presence in markets that embrace the onchain economy. He also emphasized Circle’s commitment to global stablecoin oversight, aiming to strengthen trust, compliance, and adoption worldwide, while building a resilient foundation for the internet financial system.

In addition to regulatory progress, Circle has announced a partnership with Hub71, Abu Dhabi’s tech ecosystem. This collaboration will involve working together on projects within ADGM’s digital regulatory sandbox. Circle will also join Hub71’s digital assets group, sharing its expertise with a community of over 500 tech startups and investors.

Circle’s USDC token is the second-largest stablecoin by market capitalization. The company has been actively expanding into new global markets, driven by the rising interest in stablecoins. In July 2024, Circle became the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation. In Japan, Circle expanded its presence through a partnership with SBI Holdings, with SBI VC Trade launching USDC trading, making it the first stablecoin approved under Japan’s regulatory framework.

The United Arab Emirates has been actively positioning itself as a major Web3 hub. The country has leveraged progressive regulation and strategic partnerships to attract leading digital asset firms. In August 2024, the UAE ranked third in a crypto adoption index. On April 6, Dubai’s real estate and crypto regulatory authorities signed an agreement aimed at expanding digital asset adoption in the real estate sector, linking Dubai’s real estate registry with property tokenization through a governance system.