- Circle secured ADGM approval to offer USDC-linked services as stablecoin demand rises across the Middle East
- In-principle approval allows Circle to pursue licensing in UAE under Abu Dhabi’s digital asset framework
- Circle’s UAE move follows MiCA compliance and USDC rollout in Japan via SBI Holdings partnership
Circle, the issuer of the USDC and EURC stablecoins, has received in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a money services provider.
This will allow the company to expand its operations in the Middle East. Circle’s CEO Jeremy Allaire highlighted the UAE’s role in fostering innovation in the financial sector, saying that the approval “advances our strategy to establish deep roots in markets embracing the onchain economy.”
Circle Taps Into UAE’s Fintech Ecosystem Through Hub71
To support fintech innovation, Circle has also partnered with Hub71, which is Abu Dhabi’s tech ecosystem. The collaboration includes initiatives like ADGM’s digital regulatory sandbox, providing startups with resources and mentorship.
It’s worth mentioning that near the end of last year, the company partnered with LuLu Financial Holdings to improve remittance and cross-border payment services using USDC, particularly between the Middle East, Asia, and Europe.
Previous Deals: LuLu, SBI, and MiCA Compliance
Circle seems to be on a roll lately with its commitment to global stablecoin adoption. Abu Dhabi’s approval follows the company’s compliance with the EU’s MiCA regulations and the launch of USDC in Japan through a partnership with SBI Holdings.
All things considered, Circle is poised to contribute to the Middle East’s digital finance landscape in a big way as the company leverages its stablecoin infrastructure to boost financial services in the region.
Still, while in-principle approval indicates Circle has fulfilled the initial requirements for financial activities in ADGM, the stablecoin issuer will need full regulatory approval, which might not be too far away.
What In-Principle Approval Means for Circle in ADGM
USDC’s circulating supply has grown by over 40% in 2025, reaching $62 billion, as stablecoins continue to be increasingly used for payments and remittances. They generally offer faster and cheaper alternatives to traditional banking systems.
Citigroup’s report states that stablecoin supply growth has multiplied by 30 in the last five years. It also estimates that the stablecoin market will be $1.6 trillion by 2030. In a bullish scenario, it could even reach $3.7 trillion.
The report also notes that approximately 90% of stablecoins will likely remain US dollar-denominated, with non-US countries promoting national currency central bank digital currencies (CBDCs).
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