Circle, Obtains Preliminary Approval In Abu Dhabi…Accelerates Digital Financial Expansion In Middle East

The US stablecoin issuer Circle has received preliminary approval as a Money Services Provider (MSP) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE. This is interpreted as Circle's move to officially target the Middle East and Africa market.

Circle established a new corporation in the ADGM in December 2024, and this preliminary approval is considered the first step in operating digital financial services in the region. ADGM is a financial free zone located in Abu Dhabi with its own regulatory system.

Circle co-founder and CEO Jeremy Allaire stated, “The UAE is opening a path for responsible innovative companies to establish internet-based financial systems,” adding that “this ADGM preliminary approval is an important milestone in advancing Circle's strategy to build deep relationships with markets embracing on-chain economies.” He continued, “It demonstrates Circle's ongoing commitment to global stablecoin oversight, while globally strengthening trust, regulatory compliance, and adoption.”

The preliminary approval means Circle has met the qualification requirements to conduct financial business within ADGM, but there is further review pending for final authorization. However, in previous cases, Circle in Singapore obtained its major payment institution license approximately seven months after receiving preliminary approval in November 2022.

Circle is the issuer of the stablecoin USDC, linked to the US dollar, and accounts for over 31% of stablecoin circulation on the Ethereum blockchain as of April 28. Currently, Circle is expanding into the Middle East market and has also filed for an Initial Public Offering (IPO) with the US Securities and Exchange Commission (SEC) earlier this month.

This preliminary approval in Abu Dhabi suggests that the acceptance and regulatory arrangement of digital assets in the Middle East financial sector is further progressing. There is interest in how Circle's comprehensive moves will alter the landscape of the global stablecoin market.