UAE Introduces Regulated Dirham-Backed Stablecoin to Boost Blockchain Payments

In a landmark move set to transform digital finance, three leading UAE entities — International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB) — have announced the launch of a new stablecoin backed by the UAE dirham. The initiative, revealed on Monday through a joint statement on the Abu Dhabi Securities Exchange, will be regulated by the Central Bank of the UAE (CBUAE) and issued by FAB, pending final regulatory approval.

The firms stated that the new stablecoin will “revolutionize the ease of making payments and doing business, both locally and globally,” underscoring the UAE’s strategic push to solidify its position as a global fintech hub.

Strengthening the UAE’s Digital Infrastructure

The stablecoin is designed to facilitate secure and verifiable payments across a wide range of applications — from everyday transactions for citizens to large-scale institutional payments. It also aims to support emerging digital use cases such as machine-to-machine communication and AI-driven transactions.

said Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ.

Echoing this sentiment, Syed Basar Shueb, CEO of IHC, emphasized,

FAB’s Group CEO, Hana Al Rostamani, highlighted the consumer and business benefits, calling the stablecoin

The stablecoin will leverage the ADI blockchain, a cutting-edge technology developed domestically by the ADI Foundation. Designed to bridge established financial systems with next-generation blockchain innovations, the ADI blockchain offers a compliant, scalable network for digital transactions.

Guillaume de La Tour, CEO of ADI Foundation, noted, “This stablecoin marks a pivotal milestone in the UAE’s journey toward a more inclusive and digitally empowered economy.”

The ADI Foundation has already established strategic partnerships with governments in over 20 countries, reflecting a strong foundation for the new digital currency’s potential international adoption.

Global Context: The Rise of Stablecoins

Stablecoins, unlike volatile cryptocurrencies such as Bitcoin, are pegged to stable assets like fiat currencies or gold, offering a more reliable medium of exchange. According to Allium & Visa data cited by the World Economic Forum, the total supply of stablecoins reached $162 billion in 2024 and is projected to grow to $208 billion. Moreover, stablecoin transaction volumes surpassed $27.6 trillion last year, eclipsing the combined transaction volume of Visa and Mastercard.

Tether (USDT) remains the most recognized stablecoin globally, pegged to the US dollar and supported across blockchains like Ethereum and Solana. The UAE’s dirham-backed stablecoin introduces a significant regional alternative into this dynamic space.

Outlook: A New Era for Digital Payments

With the launch of the regulated dirham-backed stablecoin, the UAE reinforces its commitment to digital innovation and financial inclusion. This initiative not only promises to make cross-border and domestic transactions more seamless but also positions the UAE as a forward-looking leader in global blockchain adoption.Further checks the official website of the Central Bank of the UAE (CBUAE) .