The UAE is taking a bold step into the future of digital finance with the upcoming launch of a new stablecoin backed by the national currency, the dirham. Announced on Monday, the initiative is a collaboration between International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB). Once regulatory approvals are secured, FAB, the UAE’s largest bank, will officially issue the stablecoin under the supervision of the Central Bank of the UAE (CBUAE).
According to a joint statement published on the Abu Dhabi Securities Exchange, the stablecoin is set to transform the landscape of payments and commerce by enabling faster, safer, and globally accessible transactions.
A New Chapter in UAE’s Digital Economy Drive
The newly announced digital currency initiative aims to support the UAE’s ongoing efforts to become a global fintech leader. Designed for widespread everyday use, the dirham-backed stablecoin will offer a reliable, secure medium for transactions between individuals, businesses, and institutions.
Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, emphasized that the move is aligned with the country’s vision of enhancing its digital ecosystem:
“The stablecoin is a critical step in building a secure, scalable digital financial environment, opening doors for innovation and growth.”
Syed Basar Shueb, CEO of IHC, added that leveraging their blockchain expertise would
“drive groundbreaking advancements in digital currency adoption across the UAE.”
FAB’s Group CEO, Hana Al Rostamani, described the stablecoin as a
“game-changer for how consumers and businesses interact with blockchain-enabled payment systems.”
Powered by ADI Blockchain: The Technology Behind the Move
The backbone of the new stablecoin is the ADI blockchain, a next-generation digital ledger developed in the UAE by the ADI Foundation. This technology enables compliant, real-time transactions and offers strong interoperability between traditional financial systems and blockchain networks.
Guillaume de La Tour, CEO of ADI Foundation, said:
“This initiative not only advances the UAE’s financial innovation but also empowers global economic participation for emerging markets.”
Already, ADI Foundation has established collaborations with government bodies in over 20 countries, further strengthening the credibility and scalability of the platform.
Stablecoins in the Global Financial Ecosystem
Stablecoins distinguish themselves from other cryptocurrencies by anchoring their value to tangible assets like fiat money or precious metals. This design dramatically reduces volatility and enhances their appeal for mainstream transactions.
Recent figures from the World Economic Forum indicate that the stablecoin market reached a total supply of $162 billion in 2024 and is forecasted to grow to $208 billion. Remarkably, their transaction volume hit $27.6 trillion, surpassing the total combined transactions processed by Visa and Mastercard.
Tether (USDT), pegged to the US dollar, remains the largest player in the global stablecoin market. However, the UAE’s entry introduces a strong regional alternative, offering a new layer of security and innovation backed by sovereign institutions.
Future Outlook: Setting Global Benchmarks
As the UAE prepares to launch its regulated dirham-backed stablecoin, it underscores the nation’s commitment to nurturing a fully digital, interconnected financial environment. The project is expected to accelerate blockchain adoption across industries, setting the stage for broader financial inclusion, greater transactional efficiency, and global competitiveness.Regulatory approvals are in progress, and stakeholders eagerly anticipate the official rollout, which is expectd to open new frontiers in both local and cross-border digital payments.For more official information, please visit the Central Bank of the UAE (CBUAE) website.
