The UAE is making a big bet on the digital dollar. Earlier this year the country’s central bank signed off on its first US dollar stablecoin called USDU — backed by real dollars in UAE banks and built for institutions who want to move money faster any time of day. Joining us is Padmanabh Diwanji, Commercial Director at Universal. Welcome to the show.
Thank you, Johnny.
How is USDU different from dollars in a regular bank account?
A dollar-backed stablecoin is a representation of a dollar sitting in a bank account — with a token representing that dollar at the same time. Traditional banking has cut-off times, correspondent banking, and friction. In a 24/7 trading world, any friction is not what you want. USDU is regulated out of ADGM, registered by the central bank, and built for large institutions looking for something transparent and trusted.
Who is actually using USDU and what for?
Large-volume cross-border payments 24/7. Real world asset tokenisation — we have very large projects in the UAE tokenising gold and real estate. If you want to pay yield on those assets, USDU makes it efficient — everybody gets paid in USDU as part of their yield rather than needing different bank accounts in different currencies.
Where is the real money and how do I know it is there?
Every dollar backing USDU sits at Mitsubishi Bank and Marsh Street Bank — both onshore UAE central bank regulated banks. We publish monthly attestation reports publicly on our website. 100% traceable. 100% transparent. When we speak to an institution the conversation starts with how do I use this — not are you legit.
How does the UAE have a head start over the US?
UAE regulators have always gone to the industry first — sitting at roundtables, asking what regulation is needed. The result is not too harsh or too lax. It is the right regulation for the right product.
Thank you so much Padmanabh.
Thank you so much. Pleasure.
