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Key Takeaways
- The Dubai Financial Services Authority (DFSA) has acknowledged USDC and EURC as regulated assets in the Dubai International Financial Centre.
- USDC and EURC have become the first stablecoins to be officially accepted under Dubai’s crypto token regime.
- The DFSA operates as the core financial hub for the Middle East, Africa, and South Asia, serving over 7,000 registered companies.
The Dubai Financial Services Authority (DFSA) has officially accepted Circle’s stablecoins USD Coin and EUR Coin (EURC) as recognized tokens under the authority’s crypto regime, marking the first stablecoins that have been approved under the regime.
Due to this new endorsement, companies in the Dubai International Financial Centre (DIFC) can now use the two stablecoins in a range of digital asset requirements, which encompass payments, treasury management, and other services.
DIFC is a key financial district and free economic zone that was established in 2004. It caters to companies that operate throughout the Middle East, Africa, and South Asia zones. According to the DIFC, the district contains around 7,000 active companies, marking a 25% rise from 2023. The regime permits only recognized crypto tokens to be used in operations throughout the district.
USDC and EURC Take Position in Dubai’s Approved Crypto List
The two stablecoins have now become part of the growing list of accepted cryptocurrencies that are permitted within the DIFC. The list already includes tokens such as Bitcoin, Ethereum, Litecoin, Ripple, and Toncoin.
The latest approval of USDC and EURC as recognized tokens adds to the increased regulatory clarity in the United Arab Emirates. Regulators in the UAE introduced a series of laws and licensing frameworks in 2024 which have been molding the country’s rapidly growing crypto sector.
Previously, Dubai had updated its crypto token rules for funds in June 2024, which allowed foreign and domestic funds to be invested in digital assets. The same month, the Central Bank of the United Arab Emirates approved the issuance of a new system in order to oversee and license stablecoins.
Even though DFIC recognized Circle’s stablecoins first, Tether, Circle’s main competitor is not far behind and is already staking its claim on other regions of the UAE. Tether’s US dollar-pegged stablecoin, USDt, gained recognition as a legitimate virtual asset in Abu Dhabi in December 2024. Tether is also injecting USDt into the UAE real estate market by partnering with Reelly Tech, a UAE real estate platform.
Following this acceptance, crypto exchanges and companies in the DIFC can now provide improved stablecoin-backed services.
Circle’s USDC Minting Surges
Circle Internet Group, Inc., is a global financial technology company and stablecoin market leader established in 2013. Circle’s Chief Strategy Offices, Dante Disparte, has declared that the recent developments will remarkably boost the usage of top stablecoins in the region, lining up with its ambitious digital asset goals. Reportedly, Circle has been actively minting more USDC as the market capitalization for the stablecoin surged from $45.6 billion to $56.3 billion during the period between Jan. 8 to Feb. 10. As of 25 February, USDC’s market capitalization stands at $56.54 Billion. However, Tether’s USDT still maintains dominance at a high of 63%, according to reports of DefiLlama.
Circle has been in top form lately, obtaining a series of approvals across different regions. In mid-2024, USDC was one of the ten stablecoins that met the full compliance requirements of the EU’s Markets in Crypto Assets (MiCA) regulation.
Following the success in the EU, both USDC and its counterpart have received full compliance with Canadian regulations during an aggressive expansion period. Circle clearly has its eye on expanding its presence in the Middle East, after already covering Europe and North America.
The rise in stablecoin usage has been one of the core warrants for this crypto bull run. Since December 2023, the stablecoin market has increased by approximately $100 billion.
At the time of writing, the USD Coin (USDC) is priced at $0.9999 and Euro Coin (EURC) is trading at $1.04.
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