The Dubai Financial Services Authority (DFSA) has granted official recognition to Circle’s stablecoins, USD Coin (USDC) and EURC, under its crypto regulatory framework. This marks the first time stablecoins have been approved under the regime.
With this approval, businesses operating within the Dubai International Financial Centre (DIFC) can now integrate USDC and EURC into various digital asset applications, such as payments, treasury management, and financial services.
Founded in 2004, the DIFC is a key financial hub and free economic zone catering to companies across the Middle East, Africa, and South Asia. The district has seen significant growth, now housing nearly 7,000 active businesses—an increase of 25% compared to 2023. Only recognized digital tokens are permitted for use within the district.
The recognition of USDC and EURC adds to the growing regulatory clarity in the United Arab Emirates. In 2024, UAE regulators introduced new licensing frameworks and regulations to support the country’s expanding crypto ecosystem. In June, the UAE’s Central Bank established a regulatory system for stablecoins, while Dubai also revised its crypto token rules to enable both foreign and domestic investment in digital assets.
Although Circle’s stablecoins are the first to be recognized by the DIFC, its competitor, Tether, has been making strides elsewhere in the UAE. In December 2024, Tether’s USDt stablecoin received recognition as a virtual asset in Abu Dhabi. Additionally, Tether is integrating USDT into the UAE’s real estate sector through a partnership with Reelly Tech, a local real estate platform.
Circle has been ramping up USDC issuance in recent months. Between Jan. 8 and Feb. 10, USDC’s market capitalization surged from $45.6 billion to $56.3 billion—a 23.4% increase. As of Feb. 24, its market cap has risen to $57.2 billion. However, Tether’s USDT continues to dominate the stablecoin market, maintaining a 63% market share, according to DefiLlama.
Stablecoins have been a major focal point in this crypto cycle, with the overall stablecoin market cap growing by nearly $100 billion since December 2023.
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