DIFC Firms Can Now Use USDC, EURC for Payments and More

Circle's stablecoins, USDC and EURC, recently approved in the EU and Canada, have now gained recognition from the Dubai Financial Services Authority (DFSA).

Cryptocurrency has seen a surge in attention and adoption following a shift in the USA's stance on digital assets during Donald Trump's crypto-friendly administration. Under this regime, cryptocurrencies and related companies are no longer treated with hostility by the government.

In a recent development, the Dubai Financial Service Authority (DFSA) has embraced the crypto movement by approving Circle's stablecoins, USDC and EURC, as authorized tokens under its new crypto regime. This marks a significant step for Circle and stablecoins in the UAE.

DIFC Firms Can Now Use USDC, EURC for Payments, Treasury Management

Circle's stablecoins, USDC and EURC, which recently received approval in the EU and Canada, have now been recognized by the Dubai Financial Services Authority (DFSA). This endorsement will allow companies within the Dubai International Financial Centre (DIFC) to adopt these stablecoins for various digital asset functions, including payments and treasury management.

The DIFC, established in 2004, serves as a key financial hub and free economic zone, catering to businesses across the Middle East, Africa, and South Asia. It houses nearly 7,000 companies, reflecting a 25% growth since 2023. Within this district, only officially recognized crypto tokens are permitted for business operations.

While USDC has secured its position as one of the first approved tokens, its competitor Tether is not far behind. In December 2024, Tether's USDT gained recognition as a legitimate digital asset in Abu Dhabi and is exploring uses in the UAE's real estate sector through a partnership with Reelly Tech, a local real estate platform.

Following these approvals, crypto exchanges and firms in the DIFC can now offer enhanced stablecoin-backed services. Circle's Chief Strategy Officer, Dante Disparte, highlighted that this approval will significantly boost the usage of top stablecoins in the region, aligning with its ambitious digital asset goals.

Circle's USDC Minting Continues to Surge

Circle has been rapidly ramping up its issuance of USDC. Between January 8 and February 10, the market capitalization of this widely used stablecoin jumped from $45 billion to $56 billion, marking an increase of over 23%. As of February 24, USDC's market cap has reached $57.2 billion. However, Tether's USDT still maintains a strong lead with a 63.12% market dominance, as reported by DefiLlama.

This surge in stablecoin activity shows one of the key trends of the current crypto bull run. Since December 2023, the total market cap of stablecoins has swelled by nearly $100 billion, reflecting their increasing utilization in the crypto space.

Also read: Citadel Securities Eyes Crypto Trading After Trump’s Support; Major Exchanges In Sight

Circle has been on a roll, securing a series of approvals across various regions lately. In mid-2024, USDC became one of ten stablecoins to meet the full compliance requirements of the EU's Markets in Crypto Assets (MiCA) regulation.

Following their success in the EU, both USDC and its counterpart have achieved full compliance with Canadian regulations during a period of aggressive expansion. With Europe and North America now covered, Circle is clearly setting its sights on expanding its presence in the Middle East.