- Circle gains FSRA’s In-Principle Approval, advancing its MEA expansion via ADGM’s regulated fintech ecosystem.
- Strategic pact with Hub71 gives Circle access to 500+ startups, boosting innovation in digital assets and compliance.
- Circle aligns UAE’s move with global growth, mirroring success in Singapore and EU’s MiCA compliance efforts.
A global financial technology firm and the issuer of USDC stablecoin, Circle Internet Group, Inc., has today received In-Principle Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to be utilized as a money services provider. The approval brings Circle closer to obtaining a full Financial Services Permission (FSP) in the ADGM’s regulatory framework, a requirement to undertake a financial activity in the jurisdiction.
Circle’s incorporation into ADGM in December 2024 will be followed by the IPA, which is part of the broader strategic initiative to expand its Middle East and Africa (MEA) footprint. The regulatory development bolsters statements by Circle to support the global adoption of stablecoins and promote compliant innovation in the digital finance ecosystem. The company is granted an in-principle approval, allowing it to begin setting up operations, while it sets out to meet the final licensing requirements.
Strategic Collaboration with Hub71 to Strengthen Innovation
In addition, Circle has signed a strategic partnership with Hub71, Abu Dhabi’s global tech ecosystem. The partnership aims to use Circle’s expertise and Hub71’s network of startups and venture capital to boost innovation within the digital assets and fintech industries.
The partnership will allow Circle to participate in ADGM’s digital regulatory sandbox, hackathons, educational workshops, mentorship programs, and startup grant access. Consequently, this involvement will help develop financial technology solutions that abide by local and international regulations.
The collaboration will accelerate fintech startups’ growth in the UAE by giving them better access to digital financial infrastructure and expertise, Hub71’s leadership indicated. The integration of Circle into the Hub71 ecosystem would permit connecting with more than 500 startups and a diverse range of institutional partners across the region’s financial and technological sectors.
Middle East Expansion Aligns with Global Growth Strategy
Circle’s engagement in the Middle East comes after similar engagements in other jurisdictions. In 2022, the company was granted in-principle approval from the Monetary Authority of Singapore before getting its full license in that market. It has also embarked on operations in Japan and been involved in European partnerships, such as compliance with the European Union’s Markets in Crypto-Assets (MiCA) rule.
Circle’s stablecoin has a circulation of over $62bn focusing on real-world utility. Recent efforts include building infrastructure for cross-border payments and integrating stablecoins into traditional finance workflows.
By setting up in Abu Dhabi, Circle aims to support the region’s ambition for digital finance and contribute to the global discourse around stablecoins and digital assets. ADGM’s regulatory clarity, with its focus on innovation, has made it an attractive hub for international fintech firms to operate in a regulated environment.
Future Outlook
Receiving In-Principle Approval from the FSRA and partnering with Hub71 are important steps toward Circle’s international growth. This highlights the development of the UAE in determining the regulatory and functional parameters of digital finance and stablecoins in the region.
