Circle Gains In-Principle Approval in Abu Dhabi to Operate as Money Services Provider

Circle, the issuer of the USDC stablecoin, just got one step closer to expanding in the Middle East. The Abu Dhabi Global Market (ADGM) has given the firm in-principle approval to operate as a money services provider, setting the stage for broader operations in the region.

The Financial Services Regulatory Authority (FSRA) issued preliminary approval after Circle’s incorporation in the ADGM in December, with a full license expected pending final requirements.

Circle Eyes Growth in Blockchain-Friendly Markets

Circle CEO Jeremy Allaire commented on the preliminary approval. He described it as a strategic step toward expanding into regions that actively support blockchain adoption and digital finance. He emphasized the company’s goal of establishing a strong local presence in markets aligned with the on-chain economy.

Circle has also partnered with Hub71, a technology ecosystem based in Abu Dhabi. Through this collaboration, the company will gain access to startup networks, grant initiatives, and ADGM’s digital regulatory sandbox, which will reinforce its presence in the region’s growing Web3 environment.

Abu Dhabi Expands Its Digital Asset Focus

Stablecoins, digital assets pegged to real-world assets such as fiat currencies or commodities, now play a central role in the cryptocurrency ecosystem. They are widely used for transactions, payments, and remittances, offering a faster and cheaper alternative to traditional finance. The global stablecoin market is currently valued at around $230 billion.

As demand for these assets grows, Abu Dhabi sees an opportunity to introduce a local option backed by the dirham. This way, it joins a global trend of expanding stablecoin options. According to a CoinTab report, the city is developing a stablecoin pegged to the dirham and regulated by the UAE Central Bank.

Building on its interest in stablecoins, Abu Dhabi is also making moves in Bitcoin. Coinbase recently announced its first-ever Bitcoin Yield Fund (CBYF), which launches on May 1. The fund is designed to offer annual returns of 4% to 8% in BTC.

Though the product isn’t live yet, it’s already drawing attention from backers. Among them is Aspen Digital, a wealth management firm based in Abu Dhabi. Aspen will serve as the exclusive distribution partner for the fund across the UAE and Asia.