Dubai Approves Circle’s USDC and EURC as First Recognized Stablecoins Under New Crypto Framework
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Crypto has gained significant attention and acceptance following a change in the USA’s view under Donald Trump’s crypto-friendly administration. Under this regime, crypto and related companies are no longer treated like enemies. As a result, the Dubai Financial Service Authority (DFSA) has embraced the crypto movement by approving Circle’s stablecoins, USDC and EURC, as authorized tokens under its new crypto regime, making them among the first to receive such approval.
DIFC Firms Can Now Use USDC, EURC for Payments and More
Circle’s stablecoins, USDC and EURC, recently approved in the EU and Canada, have now gained recognition from the Dubai Financial Services Authority (DFSA). This endorsement allows companies within the Dubai International Financial Centre (DIFC) to adopt these stablecoins for various digital asset functions like payments and treasury management.
The DIFC, established in 2004, is a key financial hub and free economic zone that caters to businesses across the Middle East, Africa, and South Asia. It is home to nearly 7,000 companies, reflecting a 25% growth since 2023. In this district, only officially recognized crypto tokens are allowed for business operations.
While USDC has secured its position as one of the first approved tokens, its competitor Tether is not far behind. In December 2024, Tether’s USDT gained recognition as a legitimate digital asset in Abu Dhabi and is exploring uses in the UAE’s real estate sector through a partnership with Reelly Tech, a local real estate platform.
Following these approvals, crypto exchanges and firms in the DIFC can now offer enhanced stablecoin-backed services. Circle’s Chief Strategy Officer, Dante Disparte, points out that this approval will significantly boost the usage of top stablecoins in the region, aligning with its ambitious digital asset goals.
Circle’s USDC Minting Continues to Surge
Circle has significantly ramped up its issuance of USDC. Between January 8 and February 10, the market capitalization of this widely used stablecoin jumped from $45 billion to $56 billion, marking over 23% increase. As of February 24, USDC’s market cap has reached $57.2 billion. Despite this growth, Tether’s USDT still maintains a strong lead with a 63.12% market dominance, as reported by DefiLlama.
This surge in stablecoin activity shows one of the key trends of the current crypto bull run. Since December 2023, the total market cap of stablecoins has swelled by nearly $100 billion, reflecting their increasing utilization in the crypto space.
Also read: Citadel Securities Eyes Crypto Trading After Trump’s Support; Major Exchanges In Sight
Circle has been on a roll, securing a series of approvals across various regions lately. In mid-2024, USDC became one of ten stablecoins to meet the full compliance requirements of the EU’s Markets in Crypto Assets (MiCA) regulation.
Following their success in the EU, both USDC and its counterpart have achieved full compliance with Canadian regulations during a period of aggressive expansion. With Europe and North America now covered, Circle is clearly setting its sights on expanding its presence in the Middle East.
