Key Insights
-
Circle received in-principle approval from ADGM’s FSRA to operate as a money services provider in Abu Dhabi, signaling a potential step toward full regulatory licensing in the UAE.
-
The approval follows Circle’s incorporation of a legal entity in ADGM in December 2024, as part of its push to expand operations in the Middle East and Africa.
ABU DHABI (MarketsXplora) – Stablecoin issuer Circle has received in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a money services provider, the company said in a statement shared with Markets Xplora.
The approval marks a strategic milestone for the Boston-based fintech firm as it continues its global expansion, particularly into the Middle East and Africa. The company incorporated a new legal entity within the ADGM in December 2024 as part of this broader initiative.
“The UAE is paving the way for responsible innovators to build the internet financial system,” said Jeremy Allaire, Circle’s Co-Founder and CEO. “This IPA from ADGM advances our strategy to establish deep roots in markets embracing the onchain economy, creating new pathways for investment and innovation in the region.”
Allaire added that the approval reflects Circle’s commitment to global oversight of stablecoins, aiming to bolster trust, compliance, and adoption worldwide. “It also underscores Circle’s enduring commitment to global stablecoin oversight — strengthening trust, compliance, and adoption worldwide, while laying a resilient foundation for the internet financial system,” he said.
An in-principle approval allows a company to begin limited preparations for operations within ADGM while it works toward securing full regulatory licensing. Though not yet a full license, the status suggests that final approval could be forthcoming. Circle’s earlier experience in Singapore provides precedent: after receiving similar in-principle approval from the Monetary Authority of Singapore in November 2022, the firm obtained a Major Payments Institution license roughly seven months later.
Circle is the issuer of USDC, a USD-pegged stablecoin that accounts for more than 31% of the total Ethereum-based stablecoin supply as of April 28. The company views this regulatory progress as essential to its ambitions of becoming a globally trusted stablecoin operator.
ADGM is a financial free zone located in the capital of the United Arab Emirates, with its own independent regulatory framework. The FSRA acts as the primary regulatory and licensing authority within the zone.
In tandem with its expansion in the UAE, Circle also has plans to become a publicly traded company. Earlier this month, the firm filed an initial public offering (IPO) with the United States Securities and Exchange Commission, signaling its intent to list on public markets.