Circle, the company behind the popular USDC stablecoin, has received initial approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi. This approval, announced on April 29, is a significant step towards obtaining a full Financial Services Permission (FSP) to operate within the Abu Dhabi Global Market (ADGM).
This milestone comes just a few months after Circle’s establishment in ADGM in December 2024. It signifies the company’s commitment to providing compliant financial services in the Middle East and Africa (MEA) region. Circle expressed that this approval solidifies its position as a trusted player in the regulated digital finance space.
With this approval, Circle aims to expand the adoption of USDC, the second-largest US dollar-pegged stablecoin, throughout the Middle East. The company believes that this move will help USDC compete more effectively against Tether’s USDT, the largest stablecoin by market capitalization. Circle’s CEO, Jeremy Allaire, emphasized the significance of this development, stating that it paves the way for new investment opportunities and innovation in the region.
In addition to regulatory achievements, Circle has forged a partnership with Hub71, a prominent global tech ecosystem in Abu Dhabi. This collaboration focuses on driving digital asset innovation and enhancing the region’s fintech infrastructure. Circle will leverage ADGM’s digital regulatory sandbox through Hub71 to test and support new financial technologies. This initiative will provide fintech founders with access to grants, funding networks, and resources to scale their businesses.
Furthermore, Circle will be integrated into Hub71’s Digital Assets Specialist ecosystem, which comprises over 500 tech startups and venture capital partners. Ahmad Ali Alwan, CEO of Hub71, expressed enthusiasm about the collaboration, highlighting how Circle’s expertise will enrich the digital assets ecosystem and provide founders with valuable resources and growth opportunities.
Overall, Circle’s partnership with Hub71 and its regulatory approval in Abu Dhabi demonstrate the company’s commitment to fostering innovation and driving the evolution of digital finance in the Middle East. This strategic approach not only strengthens Circle’s position in the market but also benefits the broader fintech community in the region.