Circle Secures Abu Dhabi Approval for USDC Stablecoin Expansion

Circle, the issuer of the USDC stablecoin, has secured in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market. This approval is a significant step toward obtaining a full Financial Services Permission license in the United Arab Emirates, allowing Circle to operate as a regulated money services provider in the region. This move is part of Circle’s broader strategy to engage with jurisdictions that support the on-chain economy and to deepen its presence in regions that encourage global trust and compliance in the stablecoin sector.

Circle’s Co-Founder and CEO, Jeremy Allaire, emphasized that this regulatory milestone is a strategic effort to expand the company’s footprint in supportive jurisdictions. The company has also partnered with Hub71, Abu Dhabi’s tech ecosystem, to collaborate on innovation projects within ADGM’s digital regulatory sandbox. This partnership will see Circle contribute its stablecoin expertise to a community of over 500 startups and investors, further solidifying its position in the region.

Circle’s expansion into the UAE complements its global strategy. The firm became the first stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation in 2024. More recently, Circle deepened its footprint in Asia through a partnership with Japan’s SBI Holdings, with USDC becoming the first stablecoin approved under Japan’s updated regulatory regime via SBI VC Trade. The UAE is also working to position itself as a major Web3 hub, with Dubai taking concrete steps to integrate blockchain into traditional industries.

In parallel, three of Abu Dhabi’s top financial institutions—ADQ, First Abu Dhabi Bank, and International Holding Company—announced plans to launch a UAE dirham-backed stablecoin. This initiative aims to cement the country’s leadership in global blockchain innovation. The stablecoin will support cutting-edge use cases, including machine-to-machine payments and artificial intelligence integrations, and is expected to be issued on the ADI blockchain. This development is part of a growing trend among nations looking for alternatives to US dollar-denominated stablecoins, which currently dominate the market.

In the US, the Senate is preparing to vote on the GENIUS Act, which would tighten stablecoin regulation. Senate Majority Leader John Thune informed Republican lawmakers that the Senate is expected to address stablecoin regulation legislation before the Memorial Day holiday on May 26. The GENIUS Act seeks to restrict the issuance of payment stablecoins to entities designated as “permitted payment stablecoin issuers,” thereby tightening the regulatory landscape for private stablecoin developers. A companion bill, known as the STABLE Act, was also introduced in the House of Representatives.

Controversy has emerged as Democratic lawmakers raised concerns about President Trump’s potential conflicts of interest related to stablecoin ventures. In particular, attention has focused on Trump’s ties to World Liberty Financial, a crypto firm with Trump family connections that recently launched a US dollar-pegged stablecoin known as USD1. Critics argue that Trump’s dual role as both a political leader and beneficiary of crypto-related ventures could pose serious risks to the financial system.