- FAB, IHC, and ADQ announce plans to launch a fully regulated dirham-backed stablecoin.
- The new stablecoin will operate on the ADI blockchain, enhancing secure and compliant payments.
- UAE aims to strengthen its leadership in blockchain innovation and expand its digital infrastructure.
Institutions based in Abu Dhabi have joined to unveiled plans to issue a stablecoin pegged to the UAE Dirham. The project is being carried out by ADQ, International Holding Company (IHC), and First Abu Dhabi Bank (FAB). First Abu Dhabi Bank (FAB) is set to issue the coin, subject to approval from the Central Bank of the UAE.
The new stablecoin will operate on the ADI blockchain, a network developed by the ADI Foundation in the UAE. It will also be fully regulated under local compliance standards. This follows increased global interest in stablecoins and puts the UAE as a growing hub for blockchain innovation.
FAB to Issue Stablecoin Under Central Bank Oversight
The stablecoin seeks to be used for payments, business transactions, and generally emerging technologies, such as machine-to-machine and also AI-based systems. The statement claimed that the currency is intended to be widely used in a variety of applications, including everyday payments as well as enterprise-level transactions.
The UAE Dirham will back the coin and will be regulated by the Central Bank for legal compliance and financial oversight. Distribution, settlement, and compliance will happen on the ADI blockchain infrastructure. Hana Al Rostamani, CEO of FAB Group, said the project will bolster the UAE’s leadership in blockchain and allow the fintech sector to grow. In particular, she stressed that the stablecoin could impact consumers and businesses in the UAE.
The ADI Foundation, which oversees the blockchain infrastructure, has established collaborations with more than 20 governments. CEO Guillaume de La Tour said the stablecoin will enable secure and scalable transactions using homegrown blockchain technology.
UAE Pushes Blockchain Expansion Through Domestic Development
Syed Basar Shueb, CEO of IHC, said: “This new stablecoin represents a major breakthrough in the development of digital currencies. He stated that IHC will use its blockchain expertise to further expand the use and application of the currency. Mohamed Hassan Alsuwaidi, the Managing Director of ADQ, pointed out that the stablecoin will reinforce the UAE’s digital infrastructure and also align with the country’s wider digital economy strategy. ADQ, a state-backed fund, manages infrastructure and global supply chain investments.
The initiative arrives amid wider global efforts to diversify stablecoin markets beyond U.S. dollar backing. In December 2024, the UAE had previously launched AE Coin, its first dirham-backed stablecoin. The new coin joins a growing number of national stablecoin projects.
The market for U.S. dollar-based stablecoins is currently valued at over $230 billion, with Tether and USDC controlling about 90% of that volume. Countries including the UAE, are developing alternative stablecoins to reduce reliance on U.S.-based financial systems. The UAE is actively promoting blockchain adoption by implementing regulatory reforms.
It has also outlined a vision focused on forming partnerships with private businesses. In one of the biggest recent crypto deals, UAE’s MGX had earlier this year invested $2 billion in Binance. The FAB-issued stablecoin, if approved, will function as a legally compliant digital currency. The ADI blockchain will offer transparency, speed and regulatory safeguards in the transactions.
The launch schedule is contingent on receiving regulatory approval from the Central Bank of the UAE. When approved, it will enable a broad range of use cases such as retail and corporate transactions as well as automated payments. By developing this, the UAE is among the countries leading in establishing state-backed digital currencies. This underscores a shift in the global finance towards regulated blockchain-based financial products.
