Circle, the issuer of the world's second-largest stablecoin USDC, has received preliminary approval from Abu Dhabi's Financial Services Regulatory Authority (FSRA) to operate as a money services provider, supporting its expansion in the Middle East.
Approval in Abu Dhabi
This preliminary nod allows Circle to begin operations as a money services provider and brings the company closer to securing a full license within the region. This step follows Circle's incorporation in the ADGM financial hub last year and confirms its intent to grow in jurisdictions embracing blockchain innovation and stablecoin adoption.
Strategic Partnership with Hub71
In tandem with the regulatory green light, Circle has partnered with Hub71, Abu Dhabi’s tech ecosystem. The collaboration includes initiatives within ADGM’s digital regulatory sandbox, startup grants, and access to institutional networks, further embedding Circle into the region’s innovation-driven financial environment.
Growth of USDC and Its Impact on the Digital Economy
With the approval in Abu Dhabi, USDC's market cap has climbed to $62 billion, up over 40% in 2025 alone. This reflects the rising demand for stablecoins as an efficient alternative to traditional payment systems. Circle also unveiled a cross-border payments network to increase the utility and adoption of USDC across financial and commercial sectors.
By obtaining regulatory approval in Abu Dhabi, Circle strengthens its position as a key player in the stablecoin market and demonstrates its commitment to deeper integration within the region's financial technologies.
