AE Coin and USD Universal are developing a regulated framework to enable seamless conversion between UAE dirham–pegged and US dollar–backed stablecoins, with a focus on institutional settlement and treasury operations in the United Arab Emirates.
The system, built on infrastructure from Al Maryah Community Bank, is designed to function as a compliant conversion rail allowing near-instant swaps between AE Coin and USDU within the UAE’s payment token ecosystem.
According to an announcement shared with Cointelegraph, the mechanism is intended to support liquidity management and cross-border payments. Initial access will be provided through regulated digital asset service providers Aquanow and Changer.ae.
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 also licensed by the UAE central bank.
The companies say the framework could eventually expand into trade finance and multi-currency settlement use cases, including integrations with fintech platforms focused on cross-border payments.
USD Universal launched USDU in January as the first USD-backed stablecoin registered under the UAE’s Payment Token Services Regulation framework for institutional and professional use. It can currently be used for digital asset-related payments in the UAE, though it is not yet approved for general retail payments on the mainland.
The UAE is rapidly expanding its blockchain and digital asset infrastructure as it strengthens its position as a global hub for crypto and Web3 companies.
This week, Ras Al Khaimah free zone Innovation City introduced a blockchain-based business identity system covering more than 1,000 registered companies, reflecting the country’s continued push toward on-chain financial and administrative infrastructure.
Regulators in Dubai have also maintained an active licensing environment for crypto firms and digital asset service providers. In February, Animoca Brands secured a Virtual Asset Service Provider (VASP) license from Dubai’s VARA regulator, while digital asset custodian BitGo obtained a broker-dealer license in late 2025.
Meanwhile, Binance enabled the rollout of tokenized stocks and exchange-traded funds from Ondo Global Markets through Abu Dhabi-based approvals this year, including tokenized exposure to equities such as Apple and Nvidia.
In March, Dubai’s Virtual Assets Regulatory Authority (VARA) further expanded its framework, introducing rules for crypto exchange-traded derivatives. The new regime includes leverage caps, suitability checks, and stricter disclosure requirements for licensed platforms offering these products.
