Circle, the issuer of the USD Coin (USDC) and EURC, has received regulatory approval from the Dubai Financial Services Authority (DFSA) to offer its stablecoins within the Dubai International Financial Centre (DIFC). Interestingly, the approval makes the tokens the first stablecoins officially recognized under the agency’s framework, boosting Circle’s global expansion efforts.
Circle Gains Regulatory Approval in Dubai
The USDC and EURC approval allows businesses, fintech firms, and financial institutions operating within DIFC’s ecosystem to use these stablecoins for payments, treasury management, and other financial services. Notably, only DFSA-approved tokens can be used and promoted within DIFC, strengthening Circle’s presence in Dubai’s fintech sector.
Dante Disparte, Circle’s Chief Strategy Officer, boasts of the move, claiming that the approval reveals the firm’s commitment to compliance, transparency, and global stablecoin adoption. He also noted that the company’s products, USDC and EURC, will continue to set high standards for crypto usage, making them attractive options for businesses and developers worldwide.
Meanwhile, the latest authorization is not the firm’s first regulatory approval. Circle’s broader regulatory push includes compliance with Europe’s MiCA framework and Canada’s digital asset listing rules. With the recent approval, the company looks forward to strengthening its presence in the United Arab Emirates (UAE).
Tether’s Dominance Weakens
The stablecoin market is witnessing a shift as Circle’s USD Coin (USDC) gains momentum while Tether (USDT) faces challenges. Though still the leader in the sector, Tether’s market share is weakening due to increasing regulatory hurdles and concerns over transparency.
Circle’s USDC, however, has increased its footprint, particularly among institutional investors prioritizing regulatory compliance. As a result, more financial institutions, fintech firms, and payment providers are integrating USDC into their operations, believing it’s a safer and more reliable option for transactions and treasury management.
Following its challenges in the crypto industry and its rival’s growing market share, Tether cares less as it diversifies its investments beyond the crypto sector. The company has poured funds into Rumble, a video-sharing platform, and has invested in brain-computer interface technology. It’s also planning to increase its share in Adecoagro, an agricultural firm.
According to data from CoinMarketCap, over the past six months, Circle’s USDC increased from $34.8 billion to $57.2 billion, marking a 64% surge in market capitalization. In contrast, Tether’s USDT only grew by 21% during the same period.
