Abu Dhabi’s International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB) have announced the launch of a Dirham-backed stablecoin, which, if approved, will be issued by FAB and regulated by the UAE Central Bank (CBUAE). This new stablecoin is set to revolutionize the UAE’s payment systems and accelerate growth in its digital finance sector.
The stablecoin will run on the ADI blockchain, developed by the ADI Foundation, which offers secure, scalable blockchain-based payment solutions. With regulatory approval, the stablecoin aims to facilitate digital payments, machine-to-machine transactions, and AI-powered applications for both businesses and individual users. It also promises to bridge traditional finance with blockchain technology, offering a stable and reliable alternative to other volatile cryptocurrencies.
The UAE Central Bank’s move to regulate the stablecoin aligns with its broader plans to promote digital currency adoption. In March 2023, the central bank launched the “Digital Dirham” initiative, and in 2024, it introduced stablecoin regulations to support the growth of the UAE’s digital economy.
ADQ’s Managing Director and Group CEO, Mohamed Alsuwaidi, called the stablecoin launch a significant step for the UAE’s digital infrastructure, providing a secure and efficient solution to support the country’s growing digital economy. Hana Al Rostamani, Group CEO of FAB, emphasized the stablecoin’s potential to transform blockchain-based payments across sectors such as finance, commerce, and trade.
The stablecoin will be deployed on the ADI blockchain, which has already partnered with more than 20 countries to build a compliant blockchain payments network. These strategic partnerships aim to extend the stablecoin’s reach globally, making it a secure, transparent, and scalable solution for consumers and businesses.
The launch of the Dirham-backed stablecoin is expected to strengthen the UAE’s position as a regional leader in cryptocurrency and digital financial innovation.
