Circle Internet Financial Secured a Key Stablecoin Regulatory Approval from Abu Dhabi's FSRA

Abu Dhabi’s FSRA has granted preliminary approval for Circle Internet Financial, permitting the firm to operate as a money services provider within the Abu Dhabi Global Market. This authorization provides a critical entry point into the UAE crypto regulation landscape, granting the firm the ability to perform payment services. The approval also strengthens Circle’s goal of leading the Middle East’s emerging digital finance sector.

This progress builds on Circle’s formal establishment within ADGM last December, as the firm continues expanding across the country, leveraging earlier regulatory achievements in Dubai. Circle considers the UAE vital for expanding stablecoin activity, particularly due to its supportive regulatory landscape. The region actively encourages compliant financial innovation, benefiting the USDC issuer.

“We are incredibly grateful to the Abu Dhabi Global Market for this In-Principle Regulatory Approval. We are also pleased to announce our strategic collaboration with Hub71 to strengthen innovation within the digital assets space, and enhance access to trusted, transparent, and regulated stablecoins in the Middle East,” said Jeremy Allaire, CEO of Circle.

“The United Arab Emirates is a nation that has the vision and leadership to support responsible innovation in the best interest of the global economy. We are proud to be establishing Circle’s presence in ADGM, a structure that is optimized to support the growth of on-chain financial systems and technologies which are best developed in a collaborative manner with multiple institutions and organizations.”

This approval facilitates tangible progress for Circle, enabling improved operations and the formation of local alliances. It may soon accelerate the introduction of USDC and EURC into new institutional environments.

Moreover, this stablecoin regulatory approval highlights Circle's focus on compliance and the evolving landscape of UAE crypto regulation. Granting this preliminary approval demonstrates that the FSRA welcomes compliant digital asset firms.

“We are delighted to welcome Circle to the Hub71 family,” said Ahmad Ali Alwan, CEO of Hub71.

“Having Circle join the vibrant startup ecosystem in Abu Dhabi is a testament to the progress that has been made in positioning the capital as a leading technology and innovation hub in the region. We are confident that this partnership will yield promising results, fostering innovation in the digital assets space and facilitating new avenues for startups and venture capital firms to collaborate within the ecosystem.”

This alliance with Hub71 grants the company entry into the digital regulatory sandbox managed by the Abu Dhabi Global Market, where new blockchain and payment methods can be tested in a controlled setting.

This integration provides Circle a platform for innovation, supporting its digital asset expansion goals, and offers access to grants and institutional connections for the USDC issuer.

Hub71 CEO Ahmad Ali Alwan stressed the importance of the alliance for Abu Dhabi’s innovation status. He believes it significantly improves Circle’s interaction with local startups and venture capital groups. The firm also shares knowledge with more than 500 startups within the tech ecosystem, illustrating a mutually beneficial relationship.

Abu Dhabi approval boosts Circle’s global digital asset expansion efforts. Following recent expansions in Europe and Japan, the firm is building its worldwide regulatory presence.

With USDC stablecoin supply projected for 40%+ growth in 2025, Circle’s compliance-focused approach is proving successful. It already fulfills MiCA requirements within the European Union and sees high institutional interest.

Alongside these global moves, the USDC issuer is nearing public company status. It recently filed for an initial public offering (IPO) in the United States, with reports suggesting a target valuation of $4-$5 billion. JPMorgan Chase and Citi are managing the listing, though Circle maintains silence during its required quiet period.

After applying for an IPO in December 2022, the firm is now awaiting approval from the US Securities and Exchange Commission.

Despite rumors of a potential merger with a special purpose acquisition company (SPAC) earlier this year, Circle CEO Jeremy Allaire stated in March that the company has no plans for a SPAC merger.

Now, the firm is focusing on completing its IPO, which will determine the next stage of Circle’s journey.