Bitcoin.com supports UAE regulated USDU dollar stablecoin
Bitcoin.com has announced that it will be supporting USDU stablecoin which is regulated out of ADGM in Abu Dhabi UAE. Bitcoin.com will support across its web and mobile wallet as an ERC-20 token on Ethereum, allowing users to hold, send, and receive the stablecoin while keeping control of their private keys.
The integration brings USDU into a wallet used by millions of users globally and will also allow the token to be used for designated Bitcoin.com services. Bitcoin.com and Universal plan to work on USDU payments between users and merchants across the platform, while swap and buy-and-sell functions are expected once third-party providers add support.
USDU is issued by Universal Digital Intl. Limited, an Abu Dhabi Global Market-based company regulated by the Financial Services Regulatory Authority for issuing Fiat-Referenced Tokens to professional clients. Universal is also registered with the Central Bank of the UAE as a Foreign Payment Token issuer under the Payment Token Services Regulation.
Each USDU is backed 1:1 by liquid U.S. dollar reserves held with regulated UAE banks, according to Universal. A third-party accounting firm independently attests the reserves each month, with the reports published by the issuer for public review.
Bitcoin.com Wallet users will retain their own private keys instead of handing custody of USDU to the wallet provider.
Bitcoin.com CEO Corbin Fraser said the reserve structure was an important part of choosing USDU for the wallet.
“People shouldn’t need to be forensic accountants to know what backs the stablecoin they hold,” Fraser said. “USDU’s registration with the UAE central bank and monthly attested 1:1 reserves mean users can verify the backing instead of trusting a logo.”
The wallet will also carry educational material covering fiat-backed stablecoins, reserve attestations and regulated issuance through Bitcoin.com’s Learn-to-Earn content and a dedicated stablecoin education series.
Alongside holding and transfers, users will be able to receive USDU from supported jurisdictions for uses including saving, invoicing and moving funds between wallets or applications. Bitcoin.com said availability will depend on local rules, while additional functionality will depend on support from outside service providers.
Universal Senior Executive Officer Juha Viitala said combining USDU with a self-custodial wallet would allow users to maintain control of their assets while accessing information on the stablecoin’s reserve backing. He noted, “Good standards only matter if people can actually use them,” Viitala said, adding that users will have access to details about USDU’s regulatory status, dollar reserves and independent attestations.
Universal launched USDU in January as the first U.S. dollar-backed stablecoin registered with the Central Bank of the UAE as a Foreign Payment Token.
USDU’s Ethereum smart contract has also undergone an independent audit by CertiK, according to the companies, while distribution is handled by Aquanow, a virtual asset service provider licensed by Dubai’s Virtual Assets Regulatory Authority.
Bitcoin.com’s first stage will focus on custody and transfers through its wallet, with users able to store USDU on Ethereum and send the token directly to other supported addresses. Payments will form another part of the rollout. Bitcoin.com said it will accept USDU for designated services and work toward allowing payments between users and merchants across its products, although the company did not provide a timetable for the additional payment functions.
Trading features will depend on integrations from third-party providers. Swaps and fiat buy-and-sell services are expected to follow when providers begin supporting USDU, and access will continue to vary depending on the user’s jurisdiction.
In March of this year, USDU went live on global crypto exchange Crypto.com.
