Circle Secures Abu Dhabi Approval, Boosts IPO Prospects

Circle, the company behind the USDC and EURC stablecoins, has received in-principle approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) to operate as a licensed money services provider in the Abu Dhabi Global Market (ADGM). This regulatory nod is a significant milestone for Circle, accelerating its international growth and bringing its planned Initial Public Offering (IPO) closer to reality.

Circle’s approval from the FSRA is a crucial step toward full licensing in the ADGM. The company was incorporated in ADGM last December, and this green light means it now meets the foundational requirements to operate in the region. Circle CEO Jeremy Allaire highlighted the UAE's role in fostering responsible innovation in the financial system, stating that this approval advances Circle’s strategy to establish deep roots in markets embracing the on-chain economy.

In addition to the regulatory approval, Circle has partnered with Hub71, Abu Dhabi’s flagship tech ecosystem. This alliance grants Circle entry into ADGM’s digital sandbox, where it can test and refine blockchain-based financial solutions under a progressive regulatory framework. By embedding itself in Abu Dhabi’s financial ecosystem, Circle reinforces its long-term Middle East strategy while positioning USDC and EURC as pillars of the coming tokenized economy.

This regulatory win in Abu Dhabi follows Circle’s earlier approval from the Dubai Financial Services Authority (DFSA) to operate in the Dubai International Financial Centre (DIFC). This approval made Circle the first approved issuer under the DIFC’s new crypto token framework, allowing banks, fintechs, and financial institutions in Dubai to legally integrate USDC and EURC into their services.

With $62.05 billion in circulation, USDC solidifies its place as the world’s second-largest stablecoin, commanding over 25% of the market. Institutional demand for USDC continues to climb, and Circle’s global push has gained fresh momentum with its recent regulatory approvals. However, there has been speculation about Circle’s plans to pivot into banking, with reports suggesting that the company, alongside BitGo, is eyeing U.S. banking licenses. Circle’s Chief Strategy Officer, Dante Disparte, has clarified that the company is not pursuing insured depository status but is preparing for upcoming U.S. stablecoin laws, which may require federal or state trust charters.

Circle has officially filed to go public, seeking a $4–5 billion valuation on the NYSE under the ticker “CRCL.” Heavyweights JPMorgan Chase and Citi are leading the charge as underwriters. If successful, this would be one of the largest crypto-related IPOs since Coinbase’s 2021 debut. Circle has also been proactive in shaping digital dollar policies, launching its “Compliance Engine” last year. This platform is designed to simplify regulatory checks for businesses using its programmable wallet services, reflecting Circle’s focus on transparency and compliance.