Dubai DFSA Approves USDC and EURC as First Stablecoins Under New Token Regime**

The Dubai Financial Services Authority (DFSA) has officially recognized USDC and EURC as the first stablecoins to be approved under its crypto token regime. This landmark decision allows companies within the Dubai International Financial Centre (DIFC) to integrate these digital assets into various applications such as payments, treasury management, and financial services.

Expanded Digital Asset Adoption in DIFC

The DIFC, established in 2004, is a leading financial district and free economic zone that serves businesses across the Middle East, Africa, and South Asia. With nearly 7,000 active companies—a 25% increase since 2023—the center is set to benefit from the enhanced regulatory clarity brought about by this approval. Only tokens that meet the DFSA’s strict standards will be permitted for use throughout the district.

Regulatory Milestones in the UAE Crypto Sector

This recognition of USDC and EURC builds on a series of regulatory advancements in the United Arab Emirates. In 2024, the UAE introduced new laws and licensing frameworks designed to foster a secure and innovative crypto environment. Earlier in the year, the Central Bank of the UAE approved a new system for licensing stablecoins, and Dubai updated its crypto token rules to enable both domestic and foreign funds to invest in digital assets.

Competitive Landscape: Circle vs. Tether

While Circle’s USDC and EURC now gain official status in the DIFC, rival Tether is making strides in other parts of the UAE. In December 2024, Tether’s USD-pegged stablecoin, USDT, was recognized as a virtual asset in Abu Dhabi. Tether is also expanding its reach by integrating USDT into the UAE’s real estate market through a strategic partnership with local platform Reelly Tech.

Market Impact and Growth of Stablecoins

Circle has been actively increasing its USDC supply, with the stablecoin’s market capitalization rising from $45.6 billion to $56.3 billion between January 8 and February 10, 2025. As of February 24, USDC’s market cap reached $57.2 billion, although Tether’s USDT continues to hold a dominant 63% share in the market according to DefiLlama data. This growth in stablecoin usage is one of the defining narratives of the current crypto bull run, with the overall stablecoin market cap expanding by nearly $100 billion since December 2023.

**Keywords:** Dubai DFSA, USDC, EURC, stablecoins, crypto token regime, DIFC, UAE crypto regulation, digital asset applications, Circle, Tether, crypto market growth