In a significant move to bolster the UAE’s digital asset infrastructure, AE Coin, the country’s first AED-pegged stablecoin licensed by the Central Bank of the UAE (CBUAE), has announced a strategic collaboration with USD Universal (USDU). The partnership aims to develop a regulated digital conversion framework between the Emirati Dirham and the US Dollar, powered by Al Maryah Community Bank (Mbank).
Quick Facts
- First regulated AED-USD digital conversion framework in the UAE.
- Powered by digital-first Al Maryah Community Bank (Mbank).
- Targets institutional settlement, treasury, and trade finance applications.
Bridging Local and Global Digital Currencies
The initiative establishes an automated conversion mechanism between USDU, a USD-backed stablecoin regulated by Abu Dhabi Global Market’s (ADGM) FSRA, and AE Coin. This creates a direct and regulated channel for near-instant exchange between USD- and AED-denominated payment tokens, operating entirely within the UAE’s robust regulatory environment.
“The future of digital finance in the UAE requires a secure, regulated bridge between local and global markets,” said Juha Viitala, Senior Executive Officer of Universal Digital INTL Limited, the issuer of USDU. “Automating conversion between USDU and AE Coin reduces friction and enables near-instant value exchange, supported by regulated providers such as Changer and Aquanow.”
Powering Institutional Settlement and Trade Finance
This framework is primarily designed to support institutional-grade operations, including virtual asset market settlement, corporate treasury functions, and liquidity management. By ensuring compliance with domestic payment regulations, the collaboration provides a stable foundation for complex financial activities.
“This collaboration advances the UAE’s vision of building a secure and efficient digital financial environment,” stated Mohammed Wassim Khayata, CEO of Al Maryah Community Bank. “By bridging AED and USD payment tokens within a compliant structure, we are laying the groundwork for scalable digital settlement and the modernization of cross-border financial flows.”
Beyond initial settlement use cases, the partners plan to build a dollar-based trade finance stablecoin infrastructure originating from the UAE. This positions the framework as a core component for future multi-currency digital settlement and compliant trade finance applications.
Ramez Rafeek, General Manager of AED Stablecoin LLC, added, “The initiative strengthens the UAE’s leadership in payment token innovation while expanding real-world financial use cases. The strategic agreement establishes a framework for further institutional integrations and new digital settlement use cases aligned with evolving regulatory standards in the UAE.”
Building the Access Ecosystem
To ensure compliant access for institutions, the USDU–AE Coin conversion service will initially be available through two key regulated players in the UAE’s virtual asset space. Changer.ae, an FSRA-regulated digital asset custodian, and Aquanow, a VARA-licensed Broker-Dealer, will facilitate access and execution for professional clients. The framework also envisions retail applications, such as allowing USDU holders to convert to AE Coin and top up their AEC Wallet for domestic digital payments.
About AE Coin
AE Coin is a next-generation stable digital currency regulated by the Central Bank of the UAE, offering secure, transparent, and efficient financial services. Focused on local payments, DeFi integration, and innovative rewards systems, AE Coin is redefining how users interact with digital money. Headquartered in Abu Dhabi, AE Coin leads the region in digital-finance innovation.
About Al Maryah Community Bank
Al Maryah Community Bank is the first fully integrated digital bank in the UAE, providing an omnichannel experience for both individual consumers and small businesses. The bank is highly specialized, focusing on growth and serving the UAE community, which includes UAE Nationals, residents, and businesses (both SMEs and corporates). The bank’s vision aligns with that of the UAE’s leaders, who are committed to supporting individuals and small businesses within the UAE economy and fostering a forward-thinking culture that emphasizes innovation and technology.
About Universal Digital Intl Limited
Universal Digital Intl Limited (“Universal”) is established in ADGM and regulated by the FSRA (FSP No. 250089) to issue a Fiat-Referenced Token to Professional Clients only. Universal is also a Registered Foreign Payment Token Issuer with the CBUAE under the PTSR and is the issuer of USDU, a fully USD-backed stablecoin and a Registered Foreign Payment Token by the CBUAE, which may be used for UAE Domestic payment of Digital Assets and Digital Assets Derivatives.
Source: Zawya
