Circle Wins Abu Dhabi License as UAE Fast-Tracks Crypto Rules — Will This Strengthen USDC's Position in the Middle East Market?

USDC stablecoin issuer Circle Internet Group, Inc. (CRCL) revealed in a statement that it secured a Financial Services Permission license from Abu Dhabi Global Market (ADGM) regulators, allowing the company to operate as a Money Services Provider within Abu Dhabi’s key international business district.

This is Circle’s second regulatory approval in the UAE in just a few months. The license enables the company to expand regulated payment and settlement services for businesses, developers, and financial institutions across the region.

Circle will now be “positioned to expand regulated payment and settlement use cases in the UAE for businesses, developers and financial institutions”, the company said. It will also help Circle boost its regional expansion plans, as it seeks to partner with more financial entities in the UAE and other markets in the Middle East and Africa, it added.

In addition to the announcement, Circle hired Dr. Saeeda Jaffar, a former top executive at Visa who oversaw the Middle East, as its Managing Director for operations in the MEA (Middle East and Africa) regions.

This development adds to the growing momentum in the region, as several major crypto banks have recently secured licenses from the UAE. Binance received approval for its global exchange on Monday, while Tether’s USDT was officially recognized earlier this week.

What the License Actually Enables

The Financial Services Permission license allows Circle to run its core stablecoin business throughout the entire UAE. This means Circle can legally issue and redeem USDC (create new USDC and cash it out), manage client money, and provide the payment and treasury systems that developers and financial institutions need across the region.

This approval gives Circle authority for more than just simple trading. Now, financial institutions can use USDC for settling payments and sending money overseas (remittances) all under full regulatory supervision.

Furthermore, businesses can now confidently build their payment systems using USDC, knowing that the stablecoin issuer operates under the same strict rules they follow. This translates as institutional-grade security for everyday users and traders. When a company is regulated as a Money Services Provider, it must follow higher standards for transparency and risk management.

The UAE’s Payment Token Services Regulation (PTSR) clearly requires stablecoins to be 100% backed by reserves (meaning they have enough cash or assets to cover every USDC) and that they comply with strict anti-money laundering and know-your-customer laws.

Why Abu Dhabi Fast-Tracked These Approvals

Abu Dhabi is following a clear strategy to become the world’s most important hub for regulated digital money. Last month, the UAE’s Central Bank approved Zand AED, which is the nation’s first regulated stablecoin backed by the local currency (the dirham) and able to work on multiple blockchains.

The government also completed its first official payment using a dirham-backed stablecoin. Several projects are currently underway to build the necessary infrastructure for tokenized finance (digital versions of traditional assets).

Of course, this isn’t happening by accident. The UAE has introduced thorough and complete regulatory rules, such as the Payments and Tokenized Securities Regulation (PTSR), which treat stablecoins as core, essential financial tools.

The strategy is focused on financial inclusion, especially for the huge number of foreign workers who live in the UAE. Digital wallets and stablecoins provide 24/7 access to financial services for these workers, many of whom struggle to access traditional banks or face very high fees when sending money back home.

This focus on helping people access money creates a real, high demand for properly regulated stablecoin infrastructure.

Competitive Dynamics in the Regional Stablecoin Market

Circle is entering the fray in the Middle East, where other companies are already established. Tether’s USDT, the largest stablecoin in the world, also secured regulatory approval in Abu Dhabi earlier this week. Furthermore, Ripple’s RippleUSD got approval back in November. Both of these competitors hold huge portions of the stablecoin market globally.

However, Circle’s specific type of regulatory license gives it key advantages. The protocol is operating as a fully regulated Money Services Provider under the strict ADGM rules, which affords it a level of comfort and compliance clarity features competitors purely offshore or less regulated might lack. For institutions, working with a fully regulated partner like Circle lowers the financial risk and clears up any regulatory confusion.

The hiring of Dr. Jaffar, who has decades of experience in regional payments, shows that Circle is dedicating serious resources to building up its presence in the region. Dr. Jaffar will focus on making deals with local financial institutions and creating the necessary operational systems to meet the region’s demand.

The Broader Market Implications

Circle’s new Abu Dhabi license strengthens USDC’s position in a region increasingly focused on regulated digital money. The Middle East handles billions of dollars annually through global remittances, trading, and corporate finance, creating significant demand for compliant digital currency solutions.

This approval comes at a time when corporate treasury departments worldwide are steadily increasing their crypto holdings. Firms in the Middle East and beyond invested roughly $1.4 billion in digital assets in recent years, signaling growing institutional interest in stablecoins like USDC.

Data from CoinDesk also shows that between 2024 and 2025, these treasury firms added approximately 850,000 BTC to their balance sheets, highlighting the expanding role of digital assets in corporate finance strategies.

Bitcoin Holdings by Public Companies (2024 – June 2025). Source: CoinDesk

For traders and crypto users in the region, regulatory clarity opens the door to safer and more efficient investment opportunities. Platforms like Digitap allow users to manage USDC holdings through regulated infrastructure, offering secure crypto wallets and reliable access to crypto assets while giving confidence that funds are properly safeguarded and professionally managed.

Conclusion: Earning and Business Opportunities

Opportunities created, from now into the coming years, through the growth of regulated stablecoin infrastructure across the region could be boundless. Developers would build apps using USDC, knowing fully well that the foundation is properly regulated. Companies accepting crypto payments for business gain regulatory certainty about the digital assets they receive.

Individuals interested in profiting from the Middle East’s crypto growth must get a hang of these new rules. The best crypto wallet options that work fluidly with regulated stablecoins allow users to participate in the emerging digital asset ecosystem and manage USDC holdings through compliant channels.

Circle’s expansion would also create jobs and business opportunities locally. The company, vitally, would need local teams, partners, and service providers to carry out its Middle East and Africa strategy.