Circle Gains ADGM Approval for Stablecoin Payment Services
Circle has expanded its regulated presence in the United Arab Emirates, obtaining a Financial Services Permission license from the Abu Dhabi Global Market (ADGM). This approval, granted by the Financial Services Regulatory Authority (FSRA) following preliminary approval in April, is a key part of Circle's strategy to grow its stablecoin-based payment services across the region.
ADGM License Establishes Regulated Base for Circle in Abu Dhabi
The new approval allows Circle to operate as a Money Services Provider within the ADGM financial free zone. This license provides a formal framework for the company to support payment and settlement tools linked to its stablecoins, USDC and EURC. The FSRA's decision was based on a thorough review of Circle's compliance processes and operational structure.
This regulatory milestone aligns with recent advancements in the UAE's oversight of fiat-referenced tokens. Earlier this year, the Dubai International Financial Centre (DIFC) also recognized USDC and EURC under its crypto token regime, establishing clear legal boundaries for stablecoin issuers and providing a foundation for institutions seeking regulated digital settlement options.
The ADGM license is also integral to the free zone's broader strategy to become a leading hub for compliant digital-asset activities, emphasizing supervised payment rails and institutional-grade infrastructure.
Stablecoin issuers operating under this framework are now subject to comprehensive regulations, including prudential rules, governance checks, Anti-Money Laundering (AML) obligations, and transparency requirements comparable to those of traditional financial institutions. These parameters offer certainty for firms looking to conduct on-chain payment flows within a regulated environment.
Circle Appoints Dr. Saeeda Jaffar to Lead Middle East and Africa Operations
In conjunction with the license approval, Circle has appointed Dr. Saeeda Jaffar as Managing Director for the Middle East and Africa (MEA) region. Dr. Jaffar brings extensive experience from her previous role at Visa, where she served as Senior Vice President and Group Country Manager for the Gulf Cooperation Council.
In her new capacity, Dr. Jaffar will be responsible for overseeing Circle's expansion strategy in the MEA, fostering partnerships with regional institutions, and driving the adoption of USDC for business payments. Her appointment underscores the growing interest from financial institutions across the region in digital asset solutions.
Banks, fintech companies, and corporations are increasingly exploring on-chain settlement tools for cross-border transactions. Dr. Jaffar's focus will be on translating the new regulatory clarity into practical use cases for remittances, corporate payments, and liquidity management.
This role is particularly significant as more regional markets establish formal rules for tokenized financial services. Circle Co-Founder and CEO Jeremy Allaire highlighted that the ADGM license reflects the growing need for consistent oversight of digital-asset issuers.
Allaire emphasized that Circle's collaboration with the FSRA is crucial for setting standards in transparency and consumer protection. He stated that the company aims to support payment systems that rely on trusted fiat-backed tokens at scale.
UAE Strengthens Position as a Digital-Asset Regulatory Hub
Circle's approval arrives as the UAE actively enhances its standing in global digital-asset regulation. Both ADGM and DIFC now offer distinct frameworks for stablecoins, creating parallel pathways for companies seeking regulated digital-asset operations.
This conducive environment continues to attract companies aiming for expansion under clear regulatory guidelines, moving away from unregulated structures. Circle's expansion follows other significant regulatory actions within ADGM, including Tether's recognition for USDT across multiple blockchains within the free zone.
Binance has also announced new authorizations for exchange, clearing, and brokerage services, establishing a regulated presence in Abu Dhabi. These approvals collectively indicate a coordinated effort to build a compliant market infrastructure within the Gulf region.
This regulatory landscape is also developing amidst increasing international scrutiny of stablecoins. The global stablecoin market now exceeds $300 billion, prompting jurisdictions worldwide to establish frameworks for fiat-referenced tokens. The UAE's approach provides regulated issuers with a strategic base to facilitate institutional flows that demand compliance, transparency, and risk oversight.