- Dirham-backed stablecoin to be regulated by UAE Central Bank
- Stablecoin set to boost UAE’s digital infrastructure and fintech growth
- ADI blockchain will ensure scalable, secure global distribution for stablecoin
Abu Dhabi’s International Holding Company (IHC), ADQ and First Abu Dhabi Bank (FAB) have announced the launch of UAE Dirham-backed stablecoin. If approved, the stablecoin will be issued by FAB and regulated by the UAE Central Bank (CBUAE). This stablecoin seeks to revolutionize payment systems and boost UAE’s digital finance sector.
The stablecoin will run on the ADI blockchain which was created by the ADI Foundation. The blockchain enables secure and scalable blockchain-based payments. The stablecoin’s regulatory approval enables it to facilitate digital payments, machine-to-machine transactions and AI powered applications for businesses and individual users.
The stablecoin will link traditional finance with blockchain technology. Moreover, it offers a stable and dependable option compared to other volatile cryptocurrencies. Moreover, the stablecoin seeks to facilitate seamless and efficient global digital payments.
Dirham-Backed Stablecoin Sets UAE on Crypto Dominance
The UAE Central Bank has established plans to promote digital currency adoption. In March 2023, the central bank launched the “Digital Dirham” initiative , which demonstrates the country’s commitment to digital economic growth. Moreover, the central bank introduced stablecoin regulations in 2024.
ADQ’s Managing Director and Group CEO, Mohamed Alsuwaidi stated that the stablecoin launch is an important step in the growth of UAE’s digital economy. He stated that the stablecoin provides a secure and efficient solution which supports UAE’s digital infrastructure. The initiative aims to strengthen UAE’s position as a global financial technology hub.
Hana Al Rostamani, Group Chief Executive Officer of FAB, emphasized on the potential of the stablecoin. She stated that the stablecoin could transform blockchain-based payments for businesses and consumers across the UAE. The new stablecoin could create innovative opportunities in sectors such as finance, commerce, and trade.
Impact of Dirham-Backed Stablecoin
The stablecoin will operate on the ADI blockchain. The ADI Foundation has partnered with more than 20 countries to develop a compliant blockchain payments network. The strategic partnerships aim to expand the stablecoin’s presence in the global market.
The new digital currency seeks to deliver secure, transparent and scalable transactions. The stablecoin expands digital currency markets and introduces a more secure, stable and accessible payment solution to consumers and institutions.
The stablecoin is expected to strengthen UAE’s crypto leadership position in the region.