The Dubai Financial Services Authority (DFSA) has officially approved Circle’s stablecoins USD Coin (USDC) and EURC (EURC) as recognized tokens under the authority’s crypto regime — the first stablecoins approved under the regime.
Due to this new status, companies in the Dubai International Financial Centre (DIFC) can now integrate the two stablecoins into a range of digital asset applications, including payments, treasury management and services.
Established in 2004, the DIFC is a financial district and free economic zone that serves companies operating throughout the Middle East, Africa and South Asia. According to the DIFC, the district houses nearly 7,000 active companies, a 25% increase from 2023. Only recognized crypto tokens are permitted for use and operation throughout the district.
The approval of USDC and EURC as recognized tokens builds on the increased regulatory clarity in the United Arab Emirates. In 2024, regulators in the UAE introduced a series of laws and licensing frameworks that have been shaping the country’s burgeoning crypto sector.
In June, the Central Bank of the United Arab Emirates approved the issuance of a new system to oversee and license stablecoins. Dubai also updated its crypto token rules for funds in June, allowing foreign and domestic funds to invest in digital assets.
Related: UAE central bank approves licensing system for stablecoins
While Circle’s stablecoins may be the first recognized for the DFIC, Circle’s main competitor, Tether, is staking its claim to other parts of the UAE. In December 2024, Tether’s US dollar-pegged stablecoin, USDt (USDT), became a recognized virtual asset in Abu Dhabi. Tether is also integrating USDT into the UAE real estate market through a partnership with Reelly Tech, a UAE real estate platform.
Related: Stripe, PayPal are ‘primary catalysts’ for stablecoin growth — Polygon Labs
Circle has been actively minting more USDC. From Jan. 8 to Feb. 10, the market capitalization for the popular stablecoin rose from $45.6 billion to $56.3 billion, an increase of 23.4%. USDC’s market capitalization stands at $57.2 billion as of Feb. 24. However, Tether’s USDT dominance remains at a high of 63%, according to DefiLlama.
The rise in stablecoin usage has been one of the top narratives of this crypto bull run. The stablecoin market cap has increased by nearly $100 billion since December 2023.
Magazine: Bitcoin payments are being undermined by centralized stablecoins
