Stablecoins USDC and EURC are officially recognized as crypto tokens in Dubai. On February 24, Circle, the issuer of these Stablecoins, announced that the Dubai Financial Services Authority (DFSA) has approved USDC and EURC for use by Dubai International Financial Centre (DIFC). The approval allows companies operating in DIFC to integrate these tokens into their daily economic activities. According to Circle, USDC and EURC are the first stables to gain official DFSA approval.
The Dubai Financial Services Agency (DFSA) was established in 2004 as an independent regulator responsible for the Dubai International Financial Centre (DIFC). In 2022, DFSA launched a comprehensive crypto token framework that provides companies within the DIFC with clear guidelines on security interactions with crypto tokens. Companies within the DIFC area are only allowed to use DFSA-approved crypto tokens to ensure that companies are protected by financial risks and losses.
This is the approval of USDC, what Eurc Stablecoins means
DIFC claims to include more than 6,900 companies. Through DFSA approval, these companies can use USDC and Eurc Stablecoins for digital asset services, payments and finance administration.
Holders of these Stablecoins can seamlessly convert between Fiat and cryptocurrencies while also leveraging tokens for fast cross-border settlements. This allows them to bypass the service fees that are usually charged by the remittance platform.
Dante Disparte, Circle’s chief strategy officer and global head of policy and operations, called the development a “mile” moment for the Stablecoin industry.
“This milestone is in line with our mission, even if the digital dollar and euro are more accessible, interoperable and useful to businesses, developers and financial institutions around the world,” Dante said. “As the first stable person to receive this name, USDC and Eurc continues to set global standards for transparency, compliance and utilities.”
The Dubai Financial Services Agency (DFSA) reportedly endorsed Bitcoin, Ethereum, Litecoin, Toncoin and Ripple for use by businesses within the Dubai International Financial Centre (DIFC). With recent approval from USDC and Eurc, the two Stablecoins are now added to the DFSA-approved list of crypto tokens.
Stablecoin ecosystem
Stablecoins are cryptocurrencies whose value is backed by traditional assets, such as fiat currencies or commodities such as gold. This support helps stabilize prices, making them less susceptible to market fluctuations. Typically, stabilizers maintain a 1:1 value ratio to their underlying assets. For example, each USDC token is fixed at 1 USD (about 86 rupees), while each Eurc token is worth 1 Euro (about 90 rupees).
In the global Stablecoin ecosystem, Circle is touted as the second largest player after Tether. In January, the company reported that USDC’s historical sales hit $18 trillion (approximately Rs 15,55,210,000 crore) since its launch in September 2018.
Sony, a crypto exchange binary and electronics giant, is working with Circle to integrate StableCoin-related features into their respective Web3 products.
