• Home
• TechnoTime Emirates

MultiBank Group, a leading global financial derivatives and digital asset trading institution, has signed a strategic Memorandum of Understanding (MoU) with Universal Digital Intl Limited. The agreement aims to develop digital asset settlement solutions utilizing the US dollar-backed stablecoin (USDU), enabling eligible institutional clients to execute digital transactions efficiently in full compliance with the UAE’s legislative and regulatory frameworks.

Pilot Phase and Technical Integration

The initiative will launch with a pilot phase tailored for eligible professional clients via MultiBank Group’s cryptocurrency and digital asset trading platform. This collaboration brings together the Group’s advanced trading infrastructure and deep liquidity network with Universal’s regulatory expertise in issuing compliant stablecoins.

The scope of the agreement covers integrating USDU as an additional settlement option on the MultiBank Exchange platform—alongside traditional fiat currencies and commodities—subject to fulfilling risk management requirements and securing the necessary legal and regulatory approvals.

Bridging Traditional and Digital Finance

Commenting on the partnership, Mohammad Al-Hakim, Vice Chairman of MultiBank Group and MultiBank Exchange Holding, and CEO of mb.io, stated that the agreement aims to strengthen the integration between traditional and digital financial ecosystems. He noted that the pilot phase will provide an ideal environment to evaluate the mechanism's efficiency in supporting institutional trading under the UAE’s regulatory umbrella.

For his part, Juha Viitala, Senior Executive Officer at Universal Digital Intl Limited, emphasized that financial institutions prioritize trust and regulatory security when settling transactions. He pointed out that USDU combines strict oversight and official registration with the Central Bank, backed by US dollar reserves held in licensed UAE banks, making its integration with MultiBank’s infrastructure a pivotal step in serving institutional clients.

Regulatory Reliability and 1:1 Reserve Backing

USDU holds a distinct market position as the first US dollar-backed stablecoin registered by the Central Bank of the UAE as a Foreign Payment Token, while its issuer is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). Every USDU token is backed 1:1 by US dollar cash reserves held in UAE banks regulated by the Central Bank, undergoing independent monthly verification and audits.

MultiBank’s selection of USDU unites three integrated regulatory pillars: a licensed issuer, a Central Bank-registered stablecoin, and an authorized trading platform within the country. Notably, the rollout of the pilot phase remains subject to compliance procedures and client onboarding requirements, as Universal’s regulated services are strictly restricted to professional clients, and USDU is not offered as a general domestic payment method within the UAE.