AE Coin and USD Universal are building a regulated system to convert between UAE dirham- and US dollar-denominated stablecoins. The goal is to support institutional settlement and treasury operations in the United Arab Emirates.
The system uses Al Maryah Community Bank as its backbone. It acts as a regulated conversion rail, enabling near-instant exchange between the dirham-pegged AE Coin and the dollar-backed USDU. The framework operates within the UAE’s payment token regulations.
According to an announcement shared with Cointelegraph, the mechanism is meant for liquidity management and cross-border payments. Early access goes through Aquanow and Changer.ae, two digital asset service providers licensed in the UAE.
Regulatory foundations
USDU falls under the Financial Services Regulatory Authority in Abu Dhabi Global Market. It is also registered with the Central Bank of the UAE as a foreign payment token. AE Coin, on the other hand, is licensed directly by the UAE central bank.
The companies hinted at expansion into trade finance and multi-currency settlement later. They also mentioned possible integrations with fintech platforms focused on cross-border payments.
Stablecoin market growth
Universal launched USDU in January. It became the first dollar-backed stablecoin registered under the UAE’s Payment Token Services Regulation framework for institutional and professional use. The stablecoin works for digital asset payments inside the UAE, but it is not yet approved for general retail use on the mainland.
The UAE has grown quickly as a hub for crypto companies. Regulators and policy makers have tried to support the rising number of blockchain and Web3 firms in the region.
Blockchain infrastructure push
This week, Ras Al Khaimah free zone Innovation City launched a blockchain-based business identity system for more than 1,000 registered companies. The move continues the country’s push into blockchain-based financial and business systems.
Dubai regulators keep licensing crypto firms. In February, Animoca Brands got a Virtual Asset Service Provider license from Dubai’s VARA regulator. Digital asset custodian BitGo also obtained a broker-dealer license in late 2025.
Binance rolled out tokenized stocks and exchange-traded funds from Ondo Global Markets through approvals in Abu Dhabi this year. The launch includes tokenized versions of equities and ETFs tied to companies like Apple and Nvidia.
In March, VARA added more rules for crypto exchange-traded derivatives in Dubai. The new rules cover leverage limits, suitability requirements, and disclosure standards for licensed platforms.
