- Abu Dhabi launches a dirham-backed stablecoin by partnering with ADQ, IHC, and FAB.
- The stablecoin runs on the ADI blockchain and targets retail, AI, and machine payments.
- This initiative strengthens the UAE’s push to become a global digital asset leader.
In a major leap toward digital financial innovation, Abu Dhabi’s sovereign wealth fund ADQ, conglomerate IHC, and First Abu Dhabi Bank (FAB) announced a new UAE dirham-backed stablecoin. FAB will issue the stablecoin, which is pending approval from the Central Bank of the United Arab Emirates. Designed for individuals, businesses, and institutions, the stablecoin aims to serve as a regulated digital currency in daily transactions.
A National Push Toward Digital Currency Adoption
The stablecoin will operate on the ADI blockchain, a proprietary technology developed by the ADI Foundation. It aims to support seamless transactions across traditional and digital environments. Further, it is designed to enhance trust in digital payments and accelerate the UAE’s push for digital infrastructure.
Also, it would provide full regulatory oversight and strong security while supporting scalable solutions for the digital economy. In addition to retail use, it will also boost artificial intelligence (AI) and machine-to-machine payments. According to sources, the initiative highlights the increased interest in digital transformation around the Gulf region.
Notably, the stablecoin initiative is noteworthy for its concerted efforts between banks and government-backed entities. This also corresponds with previous UAE actions that sought to allow cryptocurrency payments and early regulatory resolutions.
UAE’s Strategic Digital Finance Milestones
ADQ Managing Director and CEO Mohamed Hassan Alsuwaidi described the project as a step toward strengthening the country’s digital financial infrastructure, opening doors for value creation, innovation, and economic scalability. Moreover, it supports the nation’s broader vision of building a connected and digitized economy.
The project also follows the momentum from teh AE Coin, launched in December 2024 as the UAE’s first regulated stablecoin tied to the dirham. Consequently, the initiative builds on existing frameworks and policy initiatives already set by financial regulators.
Additionally, this announcement follows a $2 billion crypto investment by local firm MGX into Binance, which is one of the largest crypto deals in UAE history. Further, with the addition of the latest project, it affirms the country’s commitment to becoming a global digital asset hub.
Related: Ripple Expands in UAE with DFSA License for Crypto Services
What Does This Mean for the Future of Digital Payments?
The stablecoin is positioned to transform how value, identity, and governance interact in digital ecosystems. It will allow businesses, consumers, and institutions to transact securely across real-world and digital use cases. Besides traditional commerce, it may also facilitate innovation in fintech and automation systems.
IHC CEO Syed Basar Shueb stated that the stablecoin marks a major breakthrough in digital currency development, emphasizing the value of collaboration with ADQ and FAB in shaping a modern, blockchain-powered financial future. Consequently, this could set a precedent for similar initiatives across the region. Could this stablecoin model become a blueprint for other nations pursuing digitized financial systems?
