The Dubai Financial Services Authority (DFSA) has officially approved Circle’s USD Coin (USDC) and EURC as recognized stablecoins under its crypto regime—marking a major regulatory milestone. These are the first stablecoins to receive approval in Dubai’s financial district, signaling the emirate’s commitment to integrating digital assets into its economy.

With this approval, companies operating in the Dubai International Financial Centre (DIFC) can now leverage USDC and EURC for payments, treasury management, and other financial services. The DIFC, a leading economic zone in the Middle East, has seen a surge in crypto adoption, housing nearly 7,000 active companies—up 25% from 2023. The approval also reinforces the UAE’s push for regulatory clarity in digital finance.

Dubai’s move follows a series of regulatory advancements in 2024, including new stablecoin oversight by the UAE Central Bank and updated crypto token investment rules for domestic and foreign funds. These developments are solidifying the UAE as a global crypto hub.

While Circle celebrates its victory in Dubai, its main competitor, Tether, is making strides elsewhere in the UAE. In December 2024, Abu Dhabi recognized Tether’s USDT as a virtual asset, and the company is expanding into the region’s real estate market through a partnership with Reelly Tech.

USDC’s market cap has surged by 23.4% from January to February, reaching $57.2 billion, but Tether remains dominant, controlling 63% of the stablecoin market. The stablecoin sector has seen explosive growth, with its total market cap increasing by nearly $100 billion since December 2023. Dubai’s latest decision could further accelerate the mainstream adoption of regulated digital assets.