Circle, the company behind the USDC stablecoin, has received in-principle regulatory approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA), a significant step towards expanding its operations across the Middle East. The preliminary green light, granted by the Abu Dhabi Global Market (ADGM), allows Circle to operate as a money services provider after its incorporation in the financial hub last December.
Circle CEO Jeremy Allaire hailed the approval as a key advancement in the company’s strategy to establish a strong presence in markets embracing the onchain economy. He stated that it would create new avenues for investment and innovation within the region.
In addition to the regulatory development, Circle announced a partnership with Hub71, Abu Dhabi’s tech ecosystem. This collaboration will involve participation in ADGM’s digital regulatory sandbox, grants for startup founders, and access to institutional networks.
While the company refrained from commenting on further regional plans due to a quiet period following its U.S. public listing paperwork, the move underscores the growing global interest in stablecoins. These digital assets, pegged to fiat currencies like the U.S. dollar, are gaining traction for crypto trading and everyday payments due to their speed and lower costs compared to traditional banking. The stablecoin market currently boasts a capitalization of around $230 billion.
Circle’s USDC, with a $62 billion supply and backed by dollar assets, is a major player in the stablecoin space. The company has been actively pursuing regulatory approvals worldwide, having previously achieved compliance with the European Union’s MiCA regulations and launched USDC in Japan with SBI Holdings. Last week, Circle also introduced a cross-border payments network to further promote stablecoin adoption.
