Circle has received approval for a license from the Abu Dhabi regulator

This will allow the issuer of the second-largest stablecoin to operate within the local free economic zone

29.04.2025 - 15:30

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What’s new? Circle, the issuer of the second-largest stablecoin USDC with a capitalization of $61,99 billion, has received in-principle approval from the Abu Dhabi regulator, allowing it to expand its business in the Middle East. The Financial Services Regulatory Authority (FSRA) granted the preliminary approval of a free economic zone called the Abu Dhabi Global Market (ADGM).

CoinDesk’s material

What else is known? According to the regulator’s decision, Circle will be able to operate as a money service provider once it receives a full license. The company started integrating into the local financial hub in December 2024.

The company also announced a partnership with local organization Hub71, which is responsible for initiatives in the ADGM digital regulatory sandbox, awarding grants to startups and providing access to institutional networks.

Circle did not comment on further plans in the region due to a “quiet period” following its US stock exchange filing.

Circle previously became the first major issuer of stablecoins to begin complying with the EU-wide Markets in Crypto-Assets (MiCA) regulation. Last month, it launched USDC in Japan with SBI Holdings, and last week it unveiled a cross-border payment network to incentivize the use of stablecoins further.

Coinbase is exploring the possibility of obtaining a banking license in the United States

Circle, Paxos, and BitGo have similar plans

Late last year, the UAE’s largest bank, First Abu Dhabi Bank, in partnership with the Libre Capital platform, launched a program to issue secured loans on the blockchain using tokenized real-world assets such as securities.

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