Circle, the USDC global stablecoin issuer, has made a significant move in its plans to establish presence in the Middle East. According to recent reports, the firm has received in-principle approval (IPA) license allowing it to operate as a licensed money services provider in the United Arab Emirates (UAE). This means that Circle can now issue and redeem USDC under the ADGM regulatory framework.
The recent development also depicts UAE’s commitment to establish its position in digital finance and blockchain innovation. Circle’s presence in Abu Dhabi will also enhance the regional adoption of the USDC stablecoin.
Circle’s In-principle License in Abu Dhabi
In a press release dated April 29. 2025, stablecoin market leader Circle confirmed that it has acquired an In-Principle Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of ADGM to operate as a money services provider. This regulatory milestone supports Circle’s initiative to develop regulated digital financial services throughout the Middle East region.
Jeremy Allaire, the Co-Founder, Chairman, and CEO of Circle, sees the licensing as an important development for constructing an improved financial infrastructure. Furthermore, he believes that the licensing could lay the foundation for decentralized finance (DeFi) adoption.
“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. It also underscores Circle’s enduring commitment to global stablecoin oversight—strengthening trust, compliance, and adoption worldwide,” Allaire stated, as per the press release.
Circle also recognizes the UAE as a desirable legal jurisdiction in its strategy to expand its global operations. The firm recently made a rather unlikely move towards the end of 2024 whereby it became the first stablecoin issuer to comply with the EU’s Markets in Crypto Assets (MiCA) regulations. This outperformed other stablecoin issuers like Tether, with the USDT issuer even forced out of the market.
Hub71 Partnership to Support Circle’s Middle East Entry
Circle’s IPA license acquisition allows the firm to form a partnership with Hub71—Abu Dhabi’s innovation ecosystem. In fact, the agreement provides regulatory sandbox and startup mentorship programs to help Circle run its operations.
Hub71 provides more than 500 technological start-ups with essential funding resources that enable them to grow their business reach through industry networks. The company will give its technical support to help digital finance solutions advance alongside emerging startups. The scope of their business activities incorporates decentralized finance (DeFi) and stablecoins along with crypto payments.
Ahmad Ali Alwan, the CEO of Hub71, views the partnership with Circle as a major move to provide investors in the region with an opportunity to leverage on digital assets. He said; “Circle’s expertise will enrich our digital assets ecosystem, providing Hub71 founders with greater access to resources, mentorship, and growth opportunities.”
Alwan further added that the partnership supports its goal to drive the evolution of web3 and Abu Dhabi’s digital finance.
USDC’s Growing Role in DeFi
USDC stablecoin is cementing its role in the decentralized finance (DeFi) sector. As per the data by DefiLlama, the stablecoin currently has a market cap of $64.045 billion. This places it second to USDT with a market cap of $148.612 billion.
Additionally, USDC tops in the stablecoin supply in the Ethereum ecosystem with up to 59.92% dominance. Additionally, the coin contributes 16.9% of the stablecoin supply in the Solana network.
Circle’s IPA approval is thus set to drive USDC adoption in the Middle East. This could further drive its market capitalization and market share. Circle’s entry will also support DeFi and payment applications in the Gulf region.
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