USDU and AE Coin to launch AED–USD stablecoin rail

USDU and AE Coin are creating a regulated conversion rail in the United Arab Emirates to enable near‑instant exchanges between the dirham‑pegged AE Coin and the US dollar‑backed USDU for institutional payments and corporate treasury flows. Al Maryah Community Bank will provide the regulated settlement layer for conversions inside the country.

The infrastructure is being developed to operate within the UAE’s payment token framework. Initial access to the conversion service will be available through Aquanow and Changer.ae, both regulated digital asset service providers in the UAE. The announcement described the rail as designed to support liquidity management, cross‑border payments and institutional settlement while remaining under local regulatory oversight.

USDU launched in January as the first US dollar‑backed stablecoin registered under the UAE’s Payment Token Services Regulation for institutional and professional users. It 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 holds a license from the UAE central bank as a dirham‑pegged payment token. USDU can be used for digital asset–related payments within the UAE but has not been approved for general retail payments on the mainland.

Al Maryah Community Bank will operate the settlement rail and handle on‑chain or off‑chain settlement as required by the regulatory framework. The initial use cases cited by the partners include institutional payments and treasury operations, with the conversion facility intended to improve liquidity management for corporates and payment service providers operating in the UAE. The partners said the framework could later be extended to trade finance, multi‑currency settlement and integrations with fintech platforms focused on cross‑border payments.

The conversion rail adds a bank‑backed settlement option to the UAE’s growing set of regulated stablecoin products. Recent regulatory and infrastructure activity in the country includes a blockchain‑based business identity for companies in the Ras Al Khaimah Free Zone, expanded rules in Dubai covering exchange‑traded crypto derivatives, and ongoing licensing and approvals that have enabled tokenized stocks and exchange‑traded funds on regulated platforms.

The partners intend the service for eligible institutional and professional clients using regulated onramps. The setup keeps conversion and settlement activity within the UAE’s regulated financial infrastructure while linking a dirham‑pegged token to a US dollar‑pegged stablecoin registered under local rules.