USDC stablecoin issuer Circle has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).

This regulatory milestone brings Circle one step closer to obtaining a full Financial Services Permission (FSP) license, which would allow the company to operate as a fully regulated money services provider within the United Arab Emirates (UAE).

Regulatory Milestone in the UAE

The in-principle approval signals the UAE’s growing status as a global hub for digital assets and Web3 innovation. With this IPA, Circle is poised to expand its operations in the Middle East, leveraging Abu Dhabi’s progressive regulatory environment to serve a rapidly growing market.

According to Circle’s official press release, the approval will enable the company to offer its suite of digital asset services under the robust oversight of ADGM, further strengthening trust and compliance in the region. Jeremy Allaire, Circle's Co-Founder and CEO said

"This approval advances our strategy to establish deep roots in the markets embracing the onchain economy. It also underscores Circle's enduring commitment to global stablecoin oversight-strengthening trust, compliance and adoption worldwide, while laying a resilient foundation for the internet financial system."

Salem Mohammed Al Darei, Chief Executive Officer of the ADGM Registration Authority, also welcomed Circle’s entry, highlighting the regulator’s commitment to supporting innovative fintech companies and fostering a thriving digital asset ecosystem in Abu Dhabi.

Circle joins forces with Hub71

Alongside its regulatory progress, Circle announced a strategic partnership with Hub71, Abu Dhabi’s leading tech ecosystem.

The collaboration will see Circle participate in ADGM’s digital regulatory sandbox, where it can test and refine blockchain-based financial solutions under a progressive regulatory framework.

As part of this partnership, Circle will also join Hub71’s digital assets group, sharing its expertise with a vibrant community of more than 500 tech startups and investors.

This move is expected to accelerate knowledge transfer, foster new collaborations, and further cement Abu Dhabi’s reputation as a magnet for Web3 talent and investment.

By embedding itself in Abu Dhabi's financial ecosystem, Circle reinforces its long-term Middle East Strategy while positioning USDC and EURC as pillars of the coming tokenized economy.

Circle’s flagship stablecoin, USDC, remains the world’s second-largest stablecoin by market capitalization, with over $62 billion USDC tokens in circulation, according to CoinMarketCap.

The company has been aggressively expanding its footprint in key international markets, capitalizing on rising institutional and retail interest in stablecoins.

In July 2024, Circle made headlines as the first global stablecoin issuer to achieve compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation, setting a new standard for regulatory adherence in the digital asset space.

The company also deepened its presence in Asia through a partnership with Japan’s SBI Holdings. On March 26, 2025, SBI VC Trade, a subsidiary of SBI Holdings, launched USDC trading, making it the first stablecoin approved under Japan’s updated regulatory framework.

UAE’s ambitions as a web3 powerhouse

The UAE continues to position itself at the forefront of the global Web3 movement, leveraging forward-thinking regulation and strategic alliances to attract top-tier digital asset firms.

In August 2024, the UAE ranked third globally in a crypto adoption index published by Henley & Partners, reflecting the country’s rapid progress in digital asset integration.

Further cementing its leadership, Dubai’s real estate and crypto regulatory authorities signed a groundbreaking agreement on April 6, 2025, to drive digital asset adoption in the property sector.

The initiative aims to link Dubai’s real estate registry with property tokenization, establishing a governance framework that could redefine how real estate is bought, sold, and managed in the digital age.