Circle’s stablecoins, USDC and EURC, have received official approval for integration and promotion within the Dubai International Financial Centre (DIFC). According to a statement released by Circle, the Dubai Financial Services Authority (DFSA) recognized these stablecoins as valid crypto tokens within the DIFC.
Key Points to Note:
- The recognition allows financial institutions and fintech companies in the DIFC to incorporate USDC and EURC into their digital asset services, payments, treasury management, and various financial applications.
This development, as stated by Ryan Lee, Chief Analyst at Bitget Research, marks a significant turning point in the stability and recognition of stablecoins amidst regional market fluctuations. He stated that “This move enhances trust in stablecoins amid regional volatility, boosts Circle’s competitive stance against Tether’s USDT dominance, and could reshape the $157 billion stablecoin market by legitimizing USDC and EURC for broader use.”
The regulatory framework introduced in Dubai in 2022 allows firms to gain licensing and seek recognition for their tokens. Only recognized crypto tokens can be utilized and advertised within the DIFC, which hosts over 6,000 firms spanning 77 countries.
