Key Takeaways
- IPA signifies that Circle has met the foundational regulatory conditions required to eventually commence business.
- Circle is also entering a partnership with Abu Dhabi’s Hub71 tech ecosystem.
As part of its global expansion efforts, stablecoin issuer Circle has received preliminary regulatory clearance from the Financial Services Regulatory Authority (FSRA) within the Abu Dhabi Global Market (ADGM).
The in-principle approval (IPA) paves the way for Circle to operate as a licensed money services provider in the ADGM, a financial free zone in the UAE’s capital that operates under an independent legal framework tailored to global financial entities.
Though not yet a green light for full operations, the IPA signifies that Circle has met the foundational regulatory conditions required to eventually commence business.
This latest development comes just months after Circle’s stablecoin, USDC, made its official entry into the ADGM in December 2024. The firm must still secure full regulatory approval before launching its full suite of services in the jurisdiction.
Circle CEO and co-founder Jeremy Allaire described the development as a milestone in the company’s international roadmap. He praised the UAE’s openness to digital financial infrastructure, noting the IPA is part of a broader strategy to anchor Circle’s role in economies transitioning to on-chain systems.
“This approval represents more than a regulatory step—it reflects a commitment to aligning our operations with jurisdictions that are thoughtfully building the future of financial technology,” said Allaire.
Further, Circle is also entering a partnership with Abu Dhabi’s Hub71 tech ecosystem. The collaboration will offer access to a digital regulatory sandbox, institutional networks, and funding programs aimed at accelerating the presence of global fintech players in the Gulf.
Officials at ADGM welcomed Circle’s plans to establish itself within the jurisdiction. Arvind Ramamurthy, Chief of Market Development at ADGM, emphasized that Circle’s expansion contributes to Abu Dhabi’s positioning as a key destination for blockchain and fintech innovation. “Our ecosystem thrives on partnerships like these, and Circle brings both credibility and momentum to the region’s digital asset strategy,” Ramamurthy said.
Circle’s regulatory push comes amid a growing global interest in stablecoin oversight. Earlier this month, the company’s head of global policy, Dante Disparte, advocated for increased regulatory clarity across jurisdictions. He cited Europe’s MiCA framework as an example of a transparent model that could bring both institutional players and investor confidence into the crypto market.
Circle is working on securing full authorization to operate within ADGM.
