Circle, the issuer of the second-largest stablecoin (USDC), has announced that it has received preliminary regulatory approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This allows Circle to expand its operations in the Middle East.
The regulatory nod enables Circle to operate as a money services provider, moving closer to obtaining a full license after establishing its presence in the financial hub last December.
Notable Points:
- Circle received in-principle regulatory approval from ADGM to expand its Middle Eastern operations.
- Stablecoins are increasingly being adopted as alternatives for payments and remittances.
- The approval was announced shortly after Circle launched a payments network that enhances the utility of its USDC token, which currently has a market cap of $62 billion, reflecting significant growth in 2025.
According to Circle’s CEO Jeremy Allaire, this development underscores their strategy to establish a firm foothold in markets supportive of the onchain economy, fostering investment and innovation in the region.
Additionally, Circle has entered into a partnership with Hub71, Abu Dhabi’s tech ecosystem, to engage in initiatives such as participating in ADGM’s digital regulatory sandbox and providing grants to startup founders.
Due to a quiet period following their filing for an IPO in the U.S., Circle did not elaborate on further plans in the region.
Stablecoins like USDC, pegged to fiat currencies such as the U.S. dollar, are experiencing rapid growth and serve as critical infrastructure in the blockchain economy. USDC has also been a key player with a current supply of $62 billion, up over 40% this year.
As global regulations evolve around stablecoins, Circle is working towards establishing a presence in various jurisdictions. They were recognized as the first major stablecoin issuer to comply with the EU’s MiCA regulations last year and recently rolled out USDC in Japan alongside SBI Holdings.
