Dubai Greenlights Circle’s USDC and EURC Stablecoins for Financial Hub
Dubai has officially approved Circle’s USDC and EURC stablecoins for use within the Dubai International Financial Centre (DIFC), a major financial hub, the company announced on Monday. This decision by the Dubai Financial Services Authority (DFSA) allows businesses to leverage these digital currencies for payments, financial services, and more, marking a significant step forward for stablecoin adoption in the region.
The DFSA, the regulatory body overseeing the DIFC, has recognized USDC and EURC as legitimate crypto tokens. This approval means financial institutions, fintech companies, and other firms in the DIFC can now incorporate these stablecoins into their operations. From digital payments to treasury management, the move opens the door to a wide range of practical applications for businesses in this bustling financial zone.
Circle highlighted the importance of this milestone, noting that it strengthens the role of stablecoins in the DIFC, home to over 6,000 companies across 77 countries. “With this approval, financial institutions and fintechs operating in the DIFC can integrate USDC and EURC into digital asset services,” the company said in its statement. Stablecoins like USDC and EURC are cryptocurrencies pegged to traditional currencies—such as the U.S. dollar and euro—making them less volatile and more reliable for everyday transactions.
Analysts see this as a pivotal moment for the $157 billion stablecoin market. Ryan Lee, Chief Analyst at Bitget Research, described the approval as a “game-changer” in a separate statement. “This move enhances trust in stablecoins amid regional volatility, boosts Circle’s competitive stance against Tether’s USDT dominance, and could reshape the market by legitimizing USDC and EURC for broader use,” Lee explained. Tether’s USDT currently leads the stablecoin space, but Circle’s latest win could shift the balance.
Dubai laid the groundwork for this development in 2022, when it introduced regulations for the cryptocurrency sector. These rules allow companies to obtain licenses and seek recognition for their digital tokens. Within the DIFC, only approved tokens like USDC and EURC can be used or promoted, ensuring a regulated and secure environment for businesses and investors alike.