Dubai’s Financial Services Authority (DFSA) has officially recognized Circle’s stablecoins, USD Coin (USDC) and EURC, as the first stablecoins approved under its digital asset regulatory framework. This approval allows businesses operating within the Dubai International Financial Centre (DIFC) to integrate these stablecoins into various financial applications, including payments and treasury services.
The DIFC, a key financial hub in the Middle East, has experienced rapid growth, housing nearly 7,000 companies, a 25% increase from 2023. Regulatory advancements in the United Arab Emirates (UAE) have driven this expansion, with authorities implementing new licensing frameworks and stablecoin oversight policies.
While Circle’s stablecoins have gained recognition in Dubai, competitor Tether has also expanded its presence in the UAE. In late 2024, Tether’s USDT was approved as a virtual asset in Abu Dhabi, and the company has been working to integrate its stablecoin into the local real estate market. These developments highlight the increasing role of stablecoins in the region’s financial ecosystem.
The stablecoin sector has witnessed massive growth, with USDC’s market capitalization surging by over 23% since January 2025. Despite this, Tether’s USDT continues to dominate the industry with a 63% market share. As regulatory clarity improves, Dubai’s recognition of stablecoins signals further institutional adoption in the digital asset space.
