Circle gets key financial service approval in Abu Dhabi

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), marking a significant step toward obtaining full operational permission under ADGM’s regulations.

In addition to celebrating this new approval, Circle has partnered with Hub71, Abu Dhabi’s global tech hub, to foster innovation in digital currencies and assets. Together, they will collaborate on projects within ADGM’s digital sandbox.

This partnership will grant startup founders access to grants, expert networks, and opportunities for accelerated growth through hackathons, training workshops, and mentorship.

As part of the agreement, Circle will join Hub71’s digital assets group, sharing its global expertise and supporting a growing community of over 500 tech startups and investment partners.

Circle joined the Abu Dhabi Global Market (ADGM) in December 2024, underscoring its commitment to secure and compliant digital finance in the Middle East and Africa.

The UAE is emerging as a crypto hub with clear regulations, a pro-business environment, and a vision beyond oil. Companies like Kraken, Binance, Rain, Bybit, and eToro have all established operations there.

In 2024, the UAE tested its digital currency and invested $2 billion in blockchain through Abu Dhabi’s Hub71. Licensing bodies like Dubai’s VARA and ADGM ensure crypto firms operate safely.

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With no tax on crypto trades and strong legal backing, the UAE is drawing global firms. The local crypto market is projected to reach $254.3 million by 2025.

Jeremy Allaire, co-founder and CEO of Circle, noted that the UAE is aiding responsible tech companies in shaping the future of online money systems. He explained that the approval from ADGM supports Circle’s growth in regions that embrace digital finance.

Arvind Ramamurthy, who leads market development at ADGM, expressed enthusiasm about Circle joining their rapidly expanding financial community. He commended Circle for adhering to regulations, maintaining creativity, and earning global trust. He stated that Circle’s presence aligns with ADGM’s aim to be a leading hub for innovative financial ideas and services.

Dante Disparte, Chief Strategy Officer at Circle, emphasized that this approval holds significance beyond the region. He highlighted that clear rules and innovation can coexist. According to him, Circle is demonstrating how a reliable and transparent system can promote the safe use of stablecoins for more people.

“Our collaboration with Circle underscores our commitment to positioning Abu Dhabi as a global hub for FinTech and digital assets,” said Ahmad Ali Alwan, CEO of Hub71. “Circle’s expertise will enrich our digital assets ecosystem, providing Hub71 founders with greater access to resources, mentorship, and growth opportunities.”