Circle receives regulatory approval from the Abu Dhabi regulatory authority as the value of USDC reaches $62 billion.
The stablecoin issuer received initial approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market to operate as a financial services provider.
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Circle received initial regulatory approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market to expand its operations in the Middle East.
Stablecoins are growing globally as an alternative for payments and financial transfers compared to traditional rails.
The regulatory development comes after Circle launched a payment network last week to enhance the utility of the $62 billion USDC token, while the company is in a quiet period after filing for an initial public offering in the United States.
Circle, the issuer of the second-largest stablecoin, USDC, announced that it has received initial regulatory approval from Abu Dhabi, paving the way for expansion across the Middle East.
The Financial Services Regulatory Authority of the Abu Dhabi Global Market granted the company initial green light to operate as a financial services provider, moving closer to obtaining full licensing after being established in the financial center last December.
Jeremy Allaire, the CEO of Circle, said in a statement on Tuesday that the approval "strengthens our strategy to establish deep roots in markets that embrace the chain economy, creating new pathways for investment and innovation in the region."
The company also announced a partnership with Hub71, the technology ecosystem in Abu Dhabi, which includes initiatives in the regulatory environment of the Abu Dhabi Global Market, grants for startup founders, and provides access to institutional networks.
The company did not comment on any further plans in the region because of a "quiet period" after filing papers in the United States to list as a public company, according to a spokesperson.
Stablecoins, which are digital currencies pegged to fiat currencies like the US dollar, represent a rapidly growing group of digital assets and a cornerstone in the blockchain-based economy. They are widely used in cryptocurrency trading and are gaining popularity in the everyday economy for payments and financial transfers, serving as a cheaper and faster alternative to traditional banking systems. The total market capitalization of stablecoins is approximately $230 billion, according to data from rwa.xyz.
Read more: Stablecoins could revolutionize blockchain adoption and reach a value of $3.7 trillion by 2030:
The leading USDC token from Citi Circle, fully backed by dollar assets like government bonds, is a key player in this space with a supply of $62 billion, an increase of over 40% in 2025.
As global regulations surrounding stablecoins continue to progress, the company has strived to attract global jurisdictions to enter the market. Circle claimed bragging rights as the first major issuer of stablecoins to comply with the EU's MiCA regulations last year. They also launched USDC in Japan last month in partnership with SBI Holdings.
Last week, Circle announced a cross-border payment network to further enhance the use of stablecoins.
