This latest milestone is part of Circle’s broader strategy to engage with jurisdictions that support the on-chain economy. Circle also recently partnered with Hub71 to contribute its stablecoin expertise to Abu Dhabi’s growing tech ecosystem. Meanwhile, three of Abu Dhabi’s top financial institutions—ADQ, First Abu Dhabi Bank, and International Holding Company—announced plans to launch a UAE dirham-backed stablecoin as part of the country’s ambition to become a blockchain innovation hub. In the US, the Senate is preparing to vote on the GENIUS Act, which would tighten stablecoin regulation. Scrutiny is also mounting over President Trump’s ties to stablecoin ventures like USD1.
Circle Strengthens Middle East Presence
Circle, the issuer of the USDC stablecoin, secured in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market, which is a major step toward obtaining a full Financial Services Permission license in the United Arab Emirates. This approval will allow Circle to function as a regulated money services provider in the region.
Jeremy Allaire, Circle’s Co-Founder and CEO, called this move a strategic effort to deepen the company’s presence in jurisdictions that support the growth of the on-chain economy The company is fully committed to encouraging global trust and compliance in the stablecoin sector.
Statement from Circle’s CEO (Source: Press Release)
Alongside the regulatory milestone, Circle also entered into a partnership with Hub71, Abu Dhabi’s tech ecosystem, to collaborate on innovation projects in ADGM’s digital regulatory sandbox. The company will contribute to Hub71’s digital assets group by bringing its stablecoin expertise to a community of over 500 startups and investors.
Circle’s knowledge could contribute a lot. With over $62 billion USDC tokens in circulation, USDC is still the world’s second-largest stablecoin by market capitalization.
Top stablecoins by market cap (Source: CoinMarketCap)
Circle’s expansion into the UAE complements its broader global strategy. In 2024, the firm became the first stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation. More recently, Circle deepened its footprint in Asia through a partnership with Japan’s SBI Holdings, with USDC becoming the first stablecoin approved under Japan’s updated regulatory regime via SBI VC Trade.
The UAE, meanwhile, is working very hard to position itself as a major Web3 hub. The country ranked third globally in a crypto adoption index by Henley & Partners in 2024, and Dubai has taken concrete steps to integrate blockchain into traditional industries. A recent agreement between Dubai’s real estate and crypto regulatory bodies also plans to link property records with tokenization systems.
UAE Prepares Own National Stablecoin Launch
Some other stablecoin developments took place in Abu Dhabi over the past few days. In fact, three of Abu Dhabi’s most powerful institutions joined forces to launch a new stablecoin pegged to the UAE dirham. The goal of this move is to cement the country’s leadership in global blockchain innovation.
The partnership includes the sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB)- which is the largest bank in the United Arab Emirates—and the International Holding Company (IHC), one of the region’s largest investment conglomerates. The stablecoin initiative is pending regulatory approval and is expected to be supervised by the UAE’s central bank.
According to the firms, the dirham-backed stablecoin will support cutting-edge use cases, including machine-to-machine payments and artificial intelligence integrations. If approved, it will be issued on the ADI blockchain, which was developed by the ADI Foundation, a nonprofit entity focused on integrating blockchain technology into traditional financial systems and government frameworks. The new stablecoin is part of a broader strategy to enhance the UAE’s digital infrastructure and diversify the country’s position in the global digital economy.
ADQ was founded in 2018, and manages state assets tied to critical infrastructure and supply chains. IHC has a market capitalization of more than $243 billion and has close links to Abu Dhabi’s ruling elite. Due to this, it adds some serious financial muscle to the initiative. FAB was formed through the 2017 merger of First Gulf Bank and the National Bank of Abu Dhabi, and provides essential banking infrastructure for the stablecoin’s rollout.
This development is part of the growing trend among nations looking for alternatives to US dollar-denominated stablecoins, which currently dominate the market. As of April 2025, the total market cap of dollar-backed stablecoins reached over $230 billion, which is a 54% increase year-over-year. Tether and USDC account for the vast majority.
Stablecoins market cap excluding USCT and USDC (Source: Alphractal)
In parallel, countries like Russia discussed plans to create their own fiat-pegged digital currencies in response to geopolitical sanctions and restrictions on dollar-linked stablecoins. Nonetheless, an April report from Citigroup suggests that despite rising interest in non-dollar stablecoins and national digital currencies, US dollar dominance in the stablecoin market is likely to stay due to its global liquidity and adoption.
US Senate Eyes Stablecoin Vote Before Memorial Day
In the US, Senate Majority Leader John Thune reportedly informed Republican lawmakers that the Senate is expected to address stablecoin regulation legislation before the Memorial Day holiday on May 26. According to an April 29 report from Politico, Thune made the remarks during a closed-door meeting with GOP senators, who currently hold a narrow majority in the Senate.
Senate Majority Leader John Thune
The legislation in question, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This legislation was introduced in February by Senator Bill Hagerty and passed through the Senate Banking Committee in March.
While Thune held back from publicly mentioning crypto-related bills during his comments on President Donald Trump’s first 100 days in office, several recent actions by the administration had potential implications for digital assets. One of Trump’s executive orders, which was signed on Jan. 23, called for the creation of a working group to explore the development of a national crypto stockpile and a regulatory framework for stablecoins. However, such executive orders lack the force of law unless followed by legislative action from Congress.
The GENIUS Act seeks to restrict the issuance of payment stablecoins to entities designated as “permitted payment stablecoin issuers,” thereby tightening the regulatory landscape for private stablecoin developers. A companion bill, known as the STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy), was also introduced in the House of Representatives, which is likewise controlled by Republicans.
Controversy emerged as Democratic lawmakers raised concerns about President Trump’s potential conflicts of interest related to stablecoin ventures. In particular, a lot of attention has focused on Trump’s ties to World Liberty Financial. This is a crypto firm with Trump family connections that recently launched a US dollar-pegged stablecoin known as USD1.
Critics argue that Trump’s dual role as both a political leader and beneficiary of crypto-related ventures could pose serious risks to the financial system.
