UAEcrypto

#AbuDhabiStablecoin
# Abu Dhabi Stablecoin: A Digital Revolution! 🚀💸
Abu Dhabi is stepping into the future with its **dirham-backed stablecoin**, a game-changer for the UAE’s digital economy! 🌟 Three major players—**ADQ**, **International Holding Company (IHC)**, and **First Abu Dhabi Bank (FAB)**—are teaming up to launch this innovative cryptocurrency, fully regulated by the **Central Bank of the UAE (CBUAE)**. 🏦✅
### Why It’s Exciting? 🎉
- **Stability Meets Blockchain**: Pegged to the UAE dirham, this stablecoin promises low volatility, making it a trusted digital currency for everyday transactions. 💰🔒
- **Powered by ADI Blockchain**: Built on the UAE’s cutting-edge **ADI blockchain** by the ADI Foundation, it ensures secure, transparent, and efficient payments. 🌐🔗
- **Global Impact**: Designed for citizens, businesses, and institutions, it supports everything from local purchases to international trade and even AI-driven processes! 🌍🤖
- **Fintech Hub Ambition**: This move cements Abu Dhabi’s role as a global leader in blockchain innovation, rivaling financial hubs worldwide. 🏙️🚀
### The Big Picture 📈
The stablecoin will transform how we pay, shop, and do business, both locally and globally. Imagine seamless, low-cost transactions for everything from groceries to cross-border deals! 🛒✈️ With the UAE’s robust regulations, including frameworks from **Abu Dhabi Global Market (ADGM)** and **Dubai’s VARA**, this stablecoin is set to be a safe and reliable choice. 🛡️
### Other Players in the Game 🎮
- **AE Coin**: Launched in December 2024, it’s the UAE’s first regulated stablecoin, also dirham-backed and ready to roll out soon. 🕒
- **Tether’s Dirham Stablecoin**: The global giant plans to launch its own UAE dirham-pegged coin, adding more options to the market. 💲
### Why It Matters? 🌟
This isn’t just about digital money—it’s about building a **cashless, inclusive economy** that empowers everyone. From faster remittances to smarter commerce, Abu Dhabi’s stablecoin is paving the way for a digitally empowered future. 💡🙌
Get ready, world—the UAE is leading the charge in crypto innovation! 🐪💸 #AbuDhabiStablecoin #UAECrypto #BlockchainFuture

In a recent announcement, Tether, the company behind the popular USD-pegged stablecoin USDT, revealed plans to launch a new stablecoin called AEDT, pegged to the United Arab Emirates (UAE) dirham. This move is aimed at meeting the rising demand for UAE currency and providing an alternative to the U.S. dollar in the Gulf region.
Why a Dirham-Pegged Stablecoin?
Tether CEO Paolo Ardoino explained that AEDT is intended to offer an alternative to the dollar, especially as global trade starts to shift. He noted that many people outside the UAE are interested in holding dirhams due to the stability of the UAE economy. Currently, the dirham is pegged to the U.S. dollar, but there is growing interest in the dirham as a reliable currency.
AEDT for Trades
The AEDT stablecoin aims to simplify international trade and remittances, cut down transaction fees, and help protect users from currency fluctuations. This new offering could further strengthen the UAE’s position in the crypto world and attract more international users to the dirham.
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The Abu Dhabi Global Market (ADGM) has been making continuous strategic efforts to position the UAE as the crypto and blockchain capital of the world. The region’s regulatory clarity, streamlined process, and strategic position as a global financial hub have contributed to its success.
BeInCrypto spoke with Dmitry Fedotov, the Head of DLT Foundations at ADGM, to understand how its blockchain-friendly regulations have driven crypto giants to open offices in Abu Dhabi. 

ADGM Poised to Accelerate Blockchain Adoption
Over the past few years, the UAE has emerged as a global leader in blockchain and Web3 adoption, creating a favorable environment for innovation and growth. The ADGM, a financial-free zone on Al Maryah Island in Abu Dhabi, has gained particular recognition for its blockchain-friendly regulatory framework. 

The ADGM was established in 2013 by a Federal Decree. It functions as the city’s financial center and responds to an independent legal and regulatory framework. Its approach to Web3 innovation has attracted major players in the industry.
“ADGM positions itself as a global leader by taking such innovative steps, inspiring other‬ jurisdictions to adopt forward-thinking solutions that redefine governance and engagement in emerging technologies,” Fedotov told BeInCrypto. 

The UAE at large is experiencing a surge in crypto adoption as more businesses and users have adopted digital assets for transactions and investments.
According to Statista, the number of users participating in the country’s crypto market will reach 3.78m users by 2025. Consequently, revenue rates are expected to remain high this year.

UAE’s Crypto Market Revenue is Projected to Reach $254.3m in 2025. Source: Statista.
Meanwhile, the Aptos Foundation, a leading global blockchain entity, announced last month the opening of its new office in the ADGM.

The strategic move aims to drive regional partnerships, accelerate blockchain adoption, and expand the Aptos ecosystem. It also reinforces the UAE’s status as a hub for blockchain and Web3 innovation.
“Partnerships with industry leaders enhance our ecosystem’s credibility, while‬ streamlined licensing processes make ADGM stand out compared to other financial hubs. These measures create a unique balance of growth opportunities and regulatory clarity,” Fedotov said.

Beyond Aptos, Chainlink Labs, TON, and Polygon Labs established their presence in ADGM to accelerate adoption in the Middle East. 
However, for any crypto entity to pursue business endeavors in ADGM, it must first undergo a series of evaluations to determine whether it is eligible for operation.

Regulation of Virtual Asset Activities in ADGM
Over the years, the UAE has established notable regulatory clarity for the crypto industry. Before offering virtual asset services in the region, an entity must first gain an operating license from ADGM’s Financial Services Regulatory Authority (FSRA).

The FSRA defines a virtual asset as “a digital representation of value that can be digitally traded and functions as a medium of exchange, a unit of account, or a store of value, but does not have legal tender status in any jurisdiction.”
Virtual assets do not require a third party to create or interact with them. Because of this, they present a series of unique challenges for regulators worldwide.

In response, the FSRA considers seven key factors in determining whether a virtual asset meets these requirements. The factors include asset maturity, security, traceability and monitoring, exchange connectivity, type of distributed ledger, innovation and efficiency, and practical application.
More specifically, the FSRA evaluates whether there is sufficient client demand for the virtual asset. It also monitors whether controls are in place to manage its volatility and if the asset can withstand or respond to its specific risks and vulnerabilities. 

Applicants also need to demonstrate whether the virtual assets help to solve a fundamental problem. Examples include meeting an unmet market need and determining whether they possess real-world, quantifiable functionality. 
“This pioneering spirit ensures ADGM remains at the forefront of shaping the future of how regulators approach ever-evolving regulatory needs,” Fedotov said.

Tether’s USDT was one of the first companies to receive approval from Abu Dhabi’s FSRA to operate its stablecoin as an Accepted Virtual Asset on the ADGM.  The approval reflects compliance with the region’s regulatory standards, paving the way for USDT’s inclusion in licensed financial services.
However, the Virtual Assets Framework is not the only one the ADGM has implemented to ensure regulatory compliance.

ADGM’s DLT Framework
In 2023, the ADGM established a framework to develop a worldwide standard for blockchain foundations, decentralized autonomous organizations (DAOs), and other Web3 entities.
Known as the Distributed Ledger Technology (DLT) Foundations Framework, this legislation allows the issuance of tokens and enables entities to employ diverse token governance strategies. 

“ADGM offers regulatory clarity in a highly respectable jurisdiction based on the direct application of English Common Law with a supportive environment for innovation,” Fedotov said.
Before receiving approval, DLT Foundations must ensure compliance with all applicable laws, requirements, rules, and regulations set forth by the UAE, the Emirate of Abu Dhabi, and the ADGM. 

To register a DLT Foundation in ADGM, applicants must provide a written charter signed by all of the founders and additionally sign a declaration of compliance. Applicants must also pay a series of initial registration fees and provide a copy of the whitepaper and tokenomics paper. 
DLT Foundations must always have a registered office in the ADGM. They also need to demonstrate that they have substantial resources, experience, and personnel in the UAE. 

“Initiatives like the DLT Foundations framework give blockchain-based organisations the opportunity to issue utility tokens and apply smart contracts for decentralised governance models,” Fedotov added.
Last month, ADGM registered TON as a DLT Foundation under its legal framework. This enabled a smoother operation and governance support for the decentralized organization. 

TON aims to drive the adoption of its blockchain in the Middle East. ADGM’s comprehensive regulatory framework provides a supportive environment for the blockchain to do so via its DLT Foundation.
Balancing Innovation with Consumer Protection

To maintain its DLT Foundation status, the TON blockchain needs to continuously comply with a series of regulations, particularly developed to safeguard consumer security.
“ADGM’s DLT/blockchain framework aligns closely with global standards, focusing on key areas like combating financial crime, ensuring user protection, and promoting market integrity,” Fedotov told BeInCrypto. 

The framework discloses that before granting a registration license, entities must provide evidence that they comply with laws related to anti-money laundering, anti-bribery, sanctions, export controls, consumer and data protection, and cybercrime prevention.
DLT Foundations must also conduct specific security audits on its data protection and security systems at least once per calendar year. Copies of the audits’ results must be sent to the registrar within two weeks of completion. 

Like the DLT Foundations Framework, the Virtual Asset Framework requires the same degree of exhaustiveness to ensure user protection.
According to the legislation, “given the increased use of Virtual Assets as a medium for financial transactions, and their connectivity to the mainstream financial system through Virtual Asset and derivative exchanges and intermediaries, there is the increased potential of contagion risks impacting the stability of the financial sector.”

Consequently, the FSRA outlines in the virtual asset framework that applicants must mitigate risks related to anti-money laundering (AML), consumer protection, technology governance, ‘exchange-type’ activities, and custody.
Applicants also need to comply with FSRA’s AML rulebook and place controls regarding virtual asset wallets, private keys, risk management, and systems recovery.

Collaboration with the Financial Action Task Force
The ADGM and the different jurisdictions that comprise the UAE have also collaborated with the Financial Action Task Force (FATF) in developing its regulatory framework. This intergovernmental organization serves as a global anti-money laundering watchdog.

“‬Through partnerships with leading blockchain security companies, ADGM integrates‬ international best practices.‬ Collaborations with global regulatory bodies, and adoption of recommendations issued‬‭ by the Financial Action Task Force (FATF)‬‭, help establish benchmarks for the industry,” Fedotov said.
In February, the FATF announced that the UAE had been removed from its list of jurisdictions subject to enhanced due diligence or increased monitoring. 

This action recognizes the UAE’s significant progress in addressing the FATF’s concerns regarding anti-money laundering and counter-terrorism financing measures.
“ADGM achieves this balance through a principle-based approach that establishes robust security and governance standards while granting companies the flexibility to‬ innovate,” Fedotov added. 

While ADGM welcomes responsible innovation within the digital asset sector, it is not intended to serve as a haven for entities that do not have a genuine commitment to regulatory compliance.
For instance, in October 2023, ADGM’s FSRA fined licensed money service provider Pyypl $486,000 for inadequate compliance with AML requirements.

Also, beyond an inclusive yet responsible framework, the ADGM has developed other pioneering initiatives that prioritize a forward-thinking approach to innovation. 
Initiatives in Cutting-Edge Fields
Part of ADGM’s appeal to Web3 developers is its proactive approach to innovation.

“ADGM’s initiatives reflect its boldness and willingness to lead by being the first to explore uncharted territories,” Fedotov said.
Over the years, ADGM has launched several pilots that reflect this motivation.
“’Mediation in the Metaverse’ is a prime example, showcasing a groundbreaking approach to resolving disputes in virtual environments‬‭ and highlighting ADGM’s ability to adapt to the rapidly evolving digital landscape,” he added.

In November 2022, the ADGM Arbitration Centre launched the Mediation in the Metaverse initiative. This pilot project leverages Web3 technology to create a virtual environment replicating the physical ADGM Arbitration Centre. 
The immersive experience is accessible via desktop or mobile devices and aims to enhance participant engagement and improve the mediation process.

Since then, ADGM has broadened its endeavors. 
“We are closely researching advancements in areas such‬‭ as‬‭ quantum computing, AI, autonomous transportation,‬‭ robotics, and space‬‭ technology‬‭ to ensure our regulations support innovation‬‭ in these cutting-edge fields,” Fedotov told BeInCrypto.
These efforts have already begun to materialize, attracting greater participation in ADGM’s crypto market and in the UAE at large.

The User Penetration Rate in the UAE is Projected to be 39.13% in 2025. Source: Statista.
According to Statista, the country’s penetration rate will reach 39.13 in 2025. This calculation is based on key market indicators, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration.
Last month, the Hashgraph Group of the Hedera ecosystem announced that it had secured a fund management license from ADGM.

With its newly attained license, the Swiss-based technology and investment firm announced the launch of a $100 million global venture fund. The funding will go toward promising startups and enterprises leveraging artificial intelligence, blockchain/DLT, robotics, and quantum computing.
This forward-thinking approach is not only limited to the ADGM, however. Other cities in the UAE are also taking a similar road. 

ADGM Mirrors Broader UAE Approach to Web3 Innovation
Overall, the UAE’s crypto and blockchain developments have been nothing short of surprising. The country is always looking to set a new benchmark for other global markets.

Last week, Dubai announced plans to construct a 17-story Crypto Tower by 2027, reflecting the city’s commitment to supporting the growth of the blockchain and Web3 sectors. This initiative will provide 150,000 square feet of leasable space for blockchain and digital asset firms. 
According to local reports, the Crypto Tower itself will integrate blockchain technology, enabling features such as on-chain voting, shared resource management, and smart contract-based operations to automate bureaucratic processes. 

The tower will provide nine floors of office space for crypto companies and allocate three floors to incubators, venture capital firms, and investment groups. There will also be one floor dedicated exclusively to AI initiatives.
“‬This forward-thinking approach ensures ADGM remains a secure, adaptable, and‬‭ innovation-friendly hub,” said Fedotov.
With its supportive policies and a growing community of blockchain pioneers, ADGM’s vision of becoming a global leader in blockchain innovation seems well within reach.

#UAE #UAECrypto #ADGM #CryptoMarket #cryptouniverseofficial

U.S. President Donald Trump proposed the creation of a "strategic reserve" for cryptocurrencies, similar to the Strategic Petroleum Reserve, it has significant implications for global interest in crypto, including in the UAE. Here's how this scenario might play out and why the UAE might respond with increased interest:
1. Global Legitimization of Cryptocurrencies
- Trump's call for a crypto strategic reserve would signal a major shift in how governments view digital assets. It would imply that cryptocurrencies are now considered a critical national resource, akin to oil or gold.
- This move could legitimize crypto on a global scale, encouraging countries like the UAE, which are already crypto-friendly, to double down on their investments and regulatory frameworks.

2. UAE's Pro-Crypto Stance
- The UAE has been a pioneer in adopting and regulating cryptocurrencies, with Dubai and Abu Dhabi positioning themselves as global crypto hubs. A U.S. endorsement of crypto as a strategic asset would likely accelerate the UAE's efforts to attract crypto businesses and investors.
- The UAE might see this as an opportunity to further diversify its economy away from oil and solidify its position as a leader in the digital asset space.

3. Increased Institutional Investment
- A U.S. strategic reserve for crypto could lead to a surge in institutional investment globally. The UAE, with its favorable tax policies and business-friendly environment, would likely attract a significant share of this investment.
- UAE-based sovereign wealth funds, such as the Abu Dhabi Investment Authority (ADIA), might increase their exposure to cryptocurrencies as part of their diversification strategies.

4. Regulatory Developments
- The UAE could respond by introducing even more progressive crypto regulations to capitalize on the growing interest. This might include clearer guidelines for crypto trading, staking, and decentralized finance (DeFi) projects.
- The UAE might also explore creating its own crypto reserve or integrating digital assets into its existing financial infrastructure.

5. Geopolitical Implications
- The UAE and other Gulf nations might view Trump's proposal as a sign that the U.S. is preparing for a future where cryptocurrencies play a central role in global finance. This could prompt them to strengthen their own crypto ecosystems to avoid falling behind.
- The UAE might also seek to collaborate with the U.S. on crypto-related initiatives, such as cross-border payments or blockchain-based supply chain solutions.

6. Market Impact
- Trump's announcement could lead to a surge in crypto prices, benefiting UAE-based investors and businesses. The UAE's crypto exchanges, such as BitOasis, might see increased trading volumes and user activity.
- The UAE could also witness a rise in crypto-related startups and innovation, as entrepreneurs flock to the region to take advantage of its supportive environment.

7. Long-Term Strategic Planning
- The UAE might start exploring the use of cryptocurrencies in its trade relationships, particularly with countries facing U.S. sanctions. This could further reduce reliance on the U.S. dollar and enhance the UAE's geopolitical influence.
- The UAE could also invest in blockchain infrastructure to support a potential crypto reserve, ensuring it remains at the forefront of the digital economy.

In summary, Trump's call for a crypto strategic reserve could act as a catalyst for the UAE to deepen its commitment to the crypto space. The UAE's proactive approach to digital assets, combined with its strategic location and business-friendly policies, would position it to benefit significantly from this shift in global sentiment.
$XRP
$SOL
#TRUMP
#UAE
#UAECrypto

Enterprise blockchain company Ripple has obtained a key license from Dubai's financial regulatory agency, according to a Thursday press release.
The company will now be able to offer regulated cryptocurrency payments within the Dubai International Financial Centre, which is a special economic zone that is considered to be one of the most advanced financial centers in the world.
Ripple CEO Brad Garlinghouse has commented that the industry has now entered a period of "unprecedented" growth. The Ripple executive has lauded the UAE for fostering "a supportive environment" for crypto.
It is worth noting that the company established its regional headquarters in Dubai back in 2020.
The company has now secured more than 60 approvals across the globe.
#MasterTheMarket
#UAECrypto