The UAE Authorizes the Launch of Dirham Stablecoin DDSC
- The UAE Central Bank approves DDSC for regulated dirham digital payments nationwide.
- DDSC integrates more programmable blockchain settlement rails with dirham reserves.
- Institutional clients can access compliant blockchain infrastructure thanks to FAB.
International Holding Company, First Abu Dhabi Bank, and Sirius International Holding have secured approval from the Central Bank of the United Arab Emirates to launch a dirham-backed stablecoin known as DDSC. The authorization moves the initiative into live operation and places it within the country’s regulated financial framework. The project aligns with the UAE’s strategy to integrate digital assets into mainstream banking infrastructure while maintaining strict regulatory oversight.
According to the Khaleej Times, IHC and FAB first announced the initiative in April 2025. Since then, the partners have advanced the framework toward operational readiness. Currently, Sirius International Holding joins the rollout to support deployment, integration, and institutional adoption across the market.
FAB customers can access the stablecoin through various platforms that have received official approval. The framework enables organizations to implement enterprise and institutional solutions while maintaining all requirements for compliance and transparency and operational security that the Central Bank requires.
Regulatory Framework and Institutional Scope
DDSC will operate within an established regulatory structure. In 2024, the Central Bank introduced its Payment Token Services Regulations, which established the regulatory framework for the issuance of stablecoins by United Arab Emirates-licensed entities. The framework enables regulated organizations to develop blockchain-based financial services while complying with specific compliance requirements.
DDSC will focus on high-value institutional functions. These include payments and collections, treasury operations, and large-scale settlement flows. In addition, the framework covers trade finance and supply-chain transactions that require secure digital infrastructure.
Furthermore, the stablecoin supports programmable financial services for regulated entities. The design allows automation within defined legal and financial boundaries. As a result, institutions can execute structured transactions with predictable value anchored to the UAE dirham.
Leadership Statements and Strategic Direction
“With the Central Bank’s approval and our transition into live operation, we are delivering trusted, institutional-grade infrastructure that strengthens resilience, accelerates innovation, and expands what is possible in regulated digital payments,” said Syed Basar Shueb, Chief Executive Officer of International Holding Company.
He added that DDSC functions as a programmable stablecoin backed by the UAE dirham. He stated that the initiative modernizes payments, settlement systems, and treasury workflows. He also noted that it enables secure automated transfers, including future machine-to-machine transactions and trade between AI agents as digital systems evolve.
Futoon Hamdan AlMazrouei, Group Head of Personal, Business, Wealth, and Privileged Client Banking at First Abu Dhabi Bank, addressed integration standards. She said stablecoins can integrate responsibly into the financial system when institutions design them to meet rigorous regulatory and risk requirements. She stated that FAB enables DDSC to combine regulatory oversight with blockchain infrastructure while delivering scalable solutions for institutional and government clients.
Related: UAE Central Bank Approves First US Dollar Stablecoin
Ajay Hans Raj Bhatia, Group CEO of Sirius International Holding, described the live launch as a new phase for regulated digital finance. He said Sirius will accelerate adoption and expand real-world institutional applications through ADI’s sovereign blockchain infrastructure under the UAE’s regulatory leadership.
Dirham Peg and Digital Payment Design
DDSC maintains a one-to-one peg with the UAE dirham. This structure anchors the token’s value to a reserve asset while enabling blockchain-based transfers. Unlike volatile cryptocurrencies, the stablecoin provides predictable value for regulated financial flows.
The initiative targets institutional markets rather than retail speculation. Therefore, it supports structured settlement systems, cross-border trade flows, and treasury automation. It also prepares the infrastructure for advanced digital transactions between autonomous systems.
As the UAE advances its regulated digital asset framework, DDSC enters the financial system under Central Bank approval. The project reflects coordination between corporate institutions and national regulators.
