Dubai Acknowledges USDC, EURC; AFS Collaborates with Ternoa on Blockchain

11 Mar, 2025

Dubai’s financial regulator, the DFSA, has approved Circle’s USDC and EURC stablecoins, making them the first to be recognized within the Dubai International Financial Centre (DIFC). This approval allows financial institutions in the DIFC to integrate these stablecoins into their services, boosting their adoption across treasury management and cross-border payments. Circle’s regulatory compliance and liquidity reserves played a key role in securing the DFSA’s approval.

The DIFC has been actively updating its legal framework to enhance its global standing, granting property rights on digital assets and refining Web3 terminology. The DFSA has also revised rules for service providers, lifting restrictions on digital asset-based funding and reducing token recognition fees to encourage blockchain innovation.

Arab Financial Services (AFS) has partnered with Ternoa to introduce stablecoin-based Point-of-Sale (PoS) terminals across Gulf countries. This initiative will enable merchants and consumers in the UAE to conduct transactions using stablecoins, with plans for expansion across the GCC. The pilot program will be tested with UAE merchants before wider adoption. AFS, backed by 37 banks, holds a Retail Payment Services License, ensuring widespread accessibility.

The use of stablecoin PoS terminals offers multiple advantages, including faster transactions and lower fees compared to traditional banking systems. Ternoa CEO Mickael Canu emphasizes the enhanced security and global scalability of stablecoin payments, positioning them as a key driver of financial inclusion in the region.

The UAE is at the forefront of digital transformation, investing heavily in AI, blockchain, and Web3 to diversify its economy. Government support and relaxed licensing regulations have attracted major global tech firms, reinforcing the country’s position as a leading digital hub in the Middle East.

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