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AE Coin and USD Universal are building a regulated settlement rail for converting between UAE dirham and US dollar stablecoins, targeting institutional payments and treasury flows in the UAE.
The system, powered by Al Maryah Community Bank, is designed as a regulated conversion rail enabling near-instant exchange between the dirham-pegged AE Coin and the US dollar-backed USDU within the UAE’s payment token framework.
According to an announcement shared with Cointelegraph, the conversion mechanism is intended for liquidity management and cross-border payments. Initial access will be provided through Aquanow and Changer.ae, two regulated digital asset service providers operating in the UAE.
USDU is regulated by the Financial Services Regulatory Authority in Abu Dhabi Global Market and registered with the Central Bank of the UAE as a foreign payment token, while AE Coin is licensed by the UAE central bank.
The companies said the framework could later expand into trade finance and multi-currency settlement applications, including integrations with fintech platforms focused on cross-border payments.
Universal launched USDU in January as the first US dollar-backed stablecoin registered under the UAE’s Payment Token Services Regulation framework for institutional and professional use. The stablecoin can be used for digital asset-related payments in the UAE but is not yet approved for general retail payments on the mainland.
Stablecoin market cap. Source: DefiLlamaStablecoin market cap. Source: DefiLlama
Related: Stablecoin industry opposes Bank of England’s unhosted wallet ban
UAE expands blockchain and digital asset infrastructure
The UAE has emerged as one of the fastest-growing hubs for crypto companies in recent years as regulators and policymakers have sought to nurture a growing concentration of blockchain and Web3 companies operating in the region.
This week, Ras Al Khaimah Free Zone Innovation City launched a blockchain-based business identity system for more than 1,000 registered companies, as the country continues expanding blockchain-based financial and business infrastructure.
Dubai regulators have also continued licensing crypto companies and digital asset service providers. In February, Animoca Brands received a Virtual Asset Service Provider license from Dubai’s VARA regulator, while digital asset custodian BitGo obtained a broker-dealer license in late 2025.
Binance also rolled out tokenized stocks and exchange-traded funds from Ondo Global Markets through approvals in Abu Dhabi this year, with the launch including tokenized versions of equities and ETFs tied to companies such as Apple and Nvidia.
In March, VARA further expanded its regulatory framework, introducing rules for crypto exchange-traded derivatives in Dubai, including leverage limits, suitability requirements and disclosure standards for licensed platforms offering the products.
Magazine: Guide to the top and emerging global crypto hubs: Mid-2026
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