AE Coin and USDU launch regulated UAE stablecoin conversion rail

AE Coin and USD Universal have introduced a regulated stablecoin conversion framework in the UAE that enables near-instant exchange between UAE dirham and U.S. dollar-backed payment tokens for institutional use.

According to a March 7 announcement the system has been built with support from Al Maryah Community Bank and functions as a regulated settlement rail between the dirham-pegged AE Coin and the dollar-backed USDU. 

The companies said the infrastructure is intended to support liquidity management, treasury operations, and cross-border settlements within the UAE’s payment token framework.

Initial access to the conversion mechanism will be offered through regulated digital asset service providers Aquanow and Changer.ae, both of which operate under UAE regulatory oversight. USD Universal said USDU is regulated by the Financial Services Regulatory Authority in Abu Dhabi Global Market and is registered with the Central Bank of the UAE as a foreign payment token. AE Coin has separately received licensing approval from the UAE central bank.

Universal launched USDU in January as the first U.S. dollar-backed stablecoin registered under the UAE’s Payment Token Services Regulation framework for institutional and professional participants. Under current approvals, the token can be used for digital asset-related payments inside the UAE, although mainland retail payments remain outside the scope of the authorization.

Across the UAE, regulators and free zones have continued adding blockchain-based financial and business systems as the country competes to attract digital asset firms and Web3 companies.

Earlier this week, Ras Al Khaimah free zone Innovation City introduced a blockchain-powered business identity platform covering more than 1,000 registered companies. Dubai’s crypto regulator VARA has also continued approving firms operating in the sector. In February, Animoca Brands secured a Virtual Asset Service Provider license from VARA, while BitGo received a broker-dealer license in late 2025.

Institutional tokenization activity has also accelerated in Abu Dhabi. Earlier this year, Binance introduced tokenized stocks and exchange-traded funds from Ondo Global Markets after obtaining approvals in Abu Dhabi. The rollout included tokenized exposure tied to companies such as Apple Inc. and NVIDIA Corporation.

In March, VARA expanded its rulebook for crypto exchange-traded derivatives by introducing leverage restrictions, disclosure requirements, and suitability standards for licensed trading platforms offering the products. 

AE Coin and USD Universal said their conversion framework could later support trade finance and multi-currency settlement services through integrations with fintech firms focused on international payments.