USDC stablecoin issuer Circle receives approval to start offering money services in Abu Dhabi

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has granted Circle an In-Principle Approval (IPA)

USDC stablecoin issuer, Circle, has received approval to start offering money services in Abu Dhabi.

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has granted Circle an In-Principle Approval (IPA). This is a significant step towards obtaining full operational permission to provide money services with an e-money license to offer monnaie électronique (e-money) services in the UAE.

Announced by the firm on Monday, the approval will also see Circle join forces with Hub71, the global tech hub in Abu Dhabi, to mentor and support startups in digital currencies and assets. Together, they will be launching several programs and initiatives.

These will include a dedicated startup foundry to foster new ventures in the digital currency and asset technology domain. They will also develop hackathons and training workshops to equip Hub71 startups with the skills to build innovative solutions.

As part of the agreement, Circle will be joining Hub71’s digital assets group, where it will be able to share its global expertise with a growing community of over 500 tech startups and investment partners.

Earlier this year, Circle announced its entry into the Abu Dhabi Global Market (ADGM) in December 2024, highlighting its commitment to expanding its footprint in the Middle East and Africa.

The partnership will see them cooperate on projects within ADGM’s digital sandbox, which provides a unique environment for testing new technologies and financial models.

Startup founders will also benefit from an integrated grants program, expert mentorship, and a vast network at Hub71. Together, they will work to accelerate the growth of promising startups.

The partnership between Circle, Hub71, and ADGM is a testament to the growing importance of digital currencies and assets in the global financial landscape.

The UAE is fast becoming a crypto hub thanks to its clear regulations, pro-business environment, and a vision that extends beyond oil.

In recent months, several crypto giants, including Kraken, Binance, Rain, Bybit, and eToro, have announced plans to expand their operations in the UAE.

In 2024, the UAE tested its own digital currency and invested $2 billion in blockchain through Abu Dhabi’s Hub71. Meanwhile, two main licensing bodies, Dubai’s Virtual Asset Regulation Authority (VARA) and Abu Dhabi Global Market (ADGM), are ensuring that crypto firms operate safely and efficiently within the country’s financial services umbrella.

Furthermore, there is no tax on crypto trades in the UAE and trades are covered by strong legislation.

The move to engage with Hub71 will see Circle contribute to expanding the digital assets ecosystem.

This will provide Hub71 founders with greater access to cutting-edge resources, mentorship opportunities, and programs designed to foster growth.

These programs will include hackathons, training workshops, and other initiatives, ultimately leading to the creation of new startups and the development of innovative solutions within the digital currency and asset technology domain.

“We are delighted to welcome Circle to the ADGM financial community, which continues to expand rapidly with the addition of several outstanding and innovative firms like Circle, who are able to combine full compliance with great creativity and agility to build trust on a global scale,” said Arvind Ramamurthy, Head, Market Development & Institutional Relations, Abu Dhabi Global Market.

“Circle’s presence in ADGM will further strengthen our position as a leading hub for the creation and delivery of innovative financial ideas and services.”

Announcing the partnership, Dante Disparte, Chief Strategy Officer at Circle, said: “This approval is not only important for Circle’s growth in a region that is rapidly adopting digital finance but also signals the increasing recognition of Circle’s role in supporting the broader digital economy.

“We are proud to be partnering with Hub71 to support startups in the digital currencies and assets domain. Together, we will be launching several programs and initiatives to provide startups with the skills and opportunities they need to succeed.”

Ahmad Ali Alwan, CEO of Hub71, added: “Our partnership with Circle further strengthens our commitment to positioning Abu Dhabi as a global hub for FinTech and digital assets.

“We are excited to have Circle join our digital assets group, where they will be able to share their expertise with a growing community of over 500 tech startups and investment partners. We are also looking forward to launching several programs and initiatives together to support startups in this rapidly evolving field.”