AE Coin and USD Universal have launched a regulated stablecoin conversion framework in the United Arab Emirates, allowing near-instant exchange between the dirham-pegged AE Coin and the dollar-backed USDU for institutional users. The companies announced the system on March 7, describing it as infrastructure designed for settlement, liquidity management, treasury activity and cross-border payments.
A bank-backed settlement rail for regulated token conversion
The framework was built with support from Al Maryah Community Bank and operates as a regulated settlement rail between the two payment tokens. The stated use case is narrow and practical. It is meant for institutions operating inside the UAE’s payment token regime, not for general retail spending.
Initial access will be provided through regulated digital asset service providers Aquanow and Changer.ae, both of which operate under UAE oversight. USD Universal said USDU is regulated by the Financial Services Regulatory Authority in Abu Dhabi Global Market and is registered with the Central Bank of the UAE as a foreign payment token. AE Coin has also received separate licensing approval from the UAE central bank.
USDU entered the UAE framework earlier this year
USD Universal launched USDU in January and described it as the first U.S. dollar-backed stablecoin registered under the UAE’s Payment Token Services Regulation framework for institutional and professional participants. Under the current approvals, the token can be used for digital asset-related payments inside the UAE. Mainland retail payments are still outside the scope of that authorization.
AE Coin and USD Universal also said the conversion framework may later be extended to support trade finance and multi-currency settlement, depending on integrations with fintech firms focused on international payments. For now, the immediate emphasis is on institutional settlement flows and treasury operations.
The launch fits a broader UAE push into blockchain finance
The rollout comes as regulators and free zones across the UAE continue adding blockchain-based financial and business infrastructure in a bid to attract digital asset firms and Web3 companies. Earlier this week, Ras Al Khaimah free zone Innovation City introduced a blockchain-powered business identity platform covering more than 1,000 registered companies.
Dubai’s crypto regulator VARA has also kept approving firms in the sector. The report notes that Animoca Brands secured a Virtual Asset Service Provider license from VARA in February, while BitGo received a broker-dealer license in late 2025. Institutional tokenization has also picked up in Abu Dhabi. After obtaining approvals there, Binance rolled out tokenized stocks and exchange-traded funds from Ondo Global Markets, including exposure linked to Apple Inc. and NVIDIA Corporation.
Rulemaking is moving at the same time. In March, VARA expanded its rulebook for crypto exchange-traded derivatives, adding leverage restrictions, disclosure requirements and suitability standards for licensed platforms offering those products. In that setting, the new AE Coin-USDU rail adds a regulated route for stablecoin conversion tied to institutional settlement and cross-border payment use.