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Stablecoin (Fiat-Referenced Virtual Asset / Payment Token) issuance in AE is regulated under CBUAE's Payment Token Services Regulation (dirham-pegged tokens such as AE Coin and DDSC licensed by CBUAE), while ADGM's FSRA separately authorizes stablecoin issuers (e.g., Universal Digital's USD-backed USDU) and DFSA narrowed its DIFC stablecoin definition in January 2026. Federal Decree Law No. 6 of 2025 consolidates stablecoin oversight under CBUAE nationwide, with issuance of new payment tokens historically restricted under the DFSA regime pending this consolidation.
Federal Decree Law No. 6 of 2025, in force from 2025-09-16, formally brings stablecoins under CBUAE's federal regulatory authority alongside virtual assets and DeFi, intended to replace the prior fragmented Central Bank framework with a single consolidated regime. Because this consolidation is still within its transitional window -- running to September 2026 -- full harmonisation of redemption rights and reserve requirements across the CBUAE Payment Token Services Regulation, ADGM FSRA stablecoin guidance and DFSA's Crypto Token Regulatory Framework has not yet been confirmed.
The DFSA's own January 2026 reset narrowed the DIFC's stablecoin definition to fiat- and high-quality-asset-backed tokens, which affects which stablecoin products can be marketed and traded as such within DIFC specifically, even as CBUAE-licensed dirham tokens and ADGM-regulated USD tokens continue operating under their own separate authorisation tracks elsewhere in the country. A further stablecoin project -- Tether's planned dirham-pegged token, developed with Phoenix Group and Green Acorn Investments -- remains at the application stage under the CBUAE's Payment Token Services Regulation rather than a confirmed authorisation, illustrating that the CBUAE pipeline for new stablecoin issuers remains active alongside the federal consolidation effort.
Outlook
Watch for further CBUAE-licensed stablecoin launches as the federal consolidation under Federal Decree Law No. 6 of 2025 proceeds toward the September 2026 grace-period deadline, and for whether Tether's pending dirham-pegged application receives formal CBUAE authorisation in that window. The degree to which redemption-right and reserve-requirement standards converge across CBUAE, ADGM and DFSA stablecoin pathways -- rather than continuing to operate as three parallel regimes -- is the key structural question for this module over the coming cycles.
no periodic updates on record for this sub-brief
Sources and findings (5)
- T4 · CoinDeskAE Coin / CBUAE — AE Coin, described as the UAE's first stablecoin licensed by the Central Bank, is backed 1:1 with dirhams and has moved into real-world retail use, including acceptance at nearly 980 ADNOC Distribution fuel and retail locations.retrieved M4bindingin forcenew
- T4 · The BlockDDSC / CBUAE — The Dirham-Backed Stablecoin DDSC, initiated by International Holding Company and First Abu Dhabi Bank, is licensed by the UAE Central Bank and backed 1:1 by UAE Dirham reserves.retrieved M4bindingin forcenew
- T4 · CoinDeskUSDU / ADGM-FSRA — The USDU USD-backed stablecoin, issued by Universal Digital, is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market and was approved by the UAE's central bank.retrieved M4bindingin forcenew
- T4 · CoinDeskCBUAE — Federal Decree Law No. 6 of 2025 brings stablecoins under CBUAE's federal regulatory authority alongside virtual assets and DeFi, replacing the prior fragmented Central Bank framework.retrieved M5bindingin forcenew
- T4 · CoinDeskTether / CBUAE — Tether's planned dirham-pegged stablecoin, developed with Phoenix Group and Green Acorn Investments, sought licensing under the UAE Central Bank's Payment Token Services Regulation.retrieved M3non-bindingnew