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Michael Geike announced that the United Arab Emirates has launched a new USD-backed stablecoin, USDU. This stablecoin, approved by the country's central bank, is unique as it operates fully within an onshore, regulated framework.
The stablecoin is backed by a 1:1 reserve in USD held at major banks in the UAE. This framework aims to provide security and trust, supported by regular attestations of the reserves.
The introduction of USDU marks yet another step in the UAE’s increasing integration of digital assets within regulated financial systems—a trend that has also influenced moves by major institutions abroad. Recent developments, such as Morgan Stanley’s pursuit of Bitcoin and Solana ETFs amid ongoing regulatory scrutiny, highlight the broader appetite for compliant crypto investment vehicles, as discussed in Michael Geike's coverage of Morgan Stanley's plans for crypto-based ETFs. Additionally, shifting approaches to stablecoin supply, exemplified by Tether's significant reduction of USDT in circulation, continue to reshape the landscape for digital currencies and their reserve management, as reported in the context of Tether's multibillion-dollar USDT burn.