AE Coin and USDU to develop a regulated AED–USD digital conversion framework for institutional settlement in the UAE

AE Coin, the UAE’s first AED-pegged stablecoin licensed by the Central Bank of the UAE, and USD Universal (USDU), a USD-backed stablecoin regulated by the Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM) and registered by the Central Bank of the UAE as a Foreign Payment Token under the Payment Token Services Regulation (PTSR), have announced a strategic collaboration to develop a regulated AED–USD digital conversion framework, powered by Al Maryah Community Bank (Mbank).

The initiative establishes an automated conversion mechanism between USDU and AE Coin, enabling near-instant exchange between USD- and AED-denominated payment tokens within the UAE’s regulatory framework. The structure is designed to support virtual asset market settlement, treasury operations, and liquidity management while maintaining compliance with domestic payment regulations.

Beyond token conversion, the collaboration marks the first step toward building a dollar-based trade finance stablecoin infrastructure originating from the UAE’s regulated digital-asset ecosystem. The partners intend to explore integration with fintech platforms specialising in cross-border trade finance, positioning the framework as a foundation for compliant multi-currency digital settlement and future trade-finance applications.

In addition to institutional applications, the framework envisions practical use cases, including enabling USDU holders to convert into AE Coin and top up the AEC Wallet for regulated domestic digital transactions.

Within the ecosystem, initial access to the USDU–AE Coin conversion will be provided through Changer.ae, an-FSRA regulated digital asset custodian, and Aquanow, a VARA-licensed Broker-Dealer, facilitating compliant access and execution within the UAE’s regulatory framework.

“The future of digital finance in the UAE requires a secure, regulated bridge between local and global markets,” said Juha Viitala, Senior Executive Officer of Universal Digital INTL Limited. “As the first USD stablecoin registered under the CBUAE’s PTSR framework, USDU is positioned to deliver institutional-grade settlement. Automating conversion between USDU and AE Coin reduces friction and enables near-instant value exchange, supported by regulated providers such as Changer and Aquanow.”

“This collaboration advances the UAE’s vision of building a secure and efficient digital financial environment,” said Mohammed Wassim Khayata, CEO of Al Maryah Community Bank. “By bridging AED and USD payment tokens within a compliant structure, we are laying the groundwork for scalable digital settlement and the modernisation of cross-border financial flows.”

Ramez Rafeek, General Manager of AED Stablecoin LLC, added “The initiative strengthens the UAE’s leadership in payment token innovation while expanding real-world financial use cases. The strategic agreement establishes a framework for further institutional integrations and new digital settlement use cases aligned with evolving regulatory standards in the UAE.”