Business
Partnership between 3 Emirati institutions to launch a stablecoin backed by the dirham
The International Holding Company and "Holding" (ADQ) along with First Abu Dhabi Bank announced joint plans to launch a new stablecoin backed by the UAE dirham and fully subject to the supervision and regulation of the Central Bank of the United Arab Emirates.
The new currency is set to be issued by First Abu Dhabi Bank, the largest bank in the UAE, following the necessary regulatory approvals.
The new stablecoin will represent a pivotal turning point and will facilitate payments and business transactions, both locally and globally, contributing to solidifying the UAE's leadership in the global blockchain innovation scene and its position as a leading global hub for financial technology, enhancing the country's digital infrastructure.
The stablecoin, backed by the UAE dirham, is designed to enable payment processes worldwide, ensuring ease of use, compliance with regulatory frameworks, and secure payments that can be verified with a high degree of reliability and efficiency.
The stablecoin will be adopted as a reliable payment method across a wide range of daily uses, whether by individuals, companies, or institutions, and will support new and advanced digital applications, such as machine-to-machine (M2M) transactions and artificial intelligence technologies.
The new currency is based on the blockchain network of "ADI", an advanced technology developed in the UAE to provide a distribution network compatible with financial systems aiming to facilitate payments through blockchain technology.
It is worth noting that "ADI" is working to connect traditional financial systems with modern blockchain technologies to create practical and effective impacts, striving to empower citizens of emerging nations to compete, participate, and contribute to the global economy. To this end, the company has established several strategic partnerships with governments in more than 20 countries.
His Excellency Mohammed Hassan Al Suwaidi, Minister of Investment and Managing Director and CEO of the group at "Holding" (ADQ), stated that the launch of the stablecoin represents a pivotal step in our commitment to enhancing the digital infrastructure ecosystem in the UAE, and as we progress towards an increasingly interconnected digital economy, the stablecoin will provide a secure, efficient, and scalable solution, while simultaneously opening new avenues for growth and value enhancement.
For his part, Syed Basar Shuaib, CEO of the International Holding Company, stated that the new stablecoin represents a significant transformation in the development of the digital currency ecosystem. We take pride in our pivotal role and active contribution to its establishment, and we look forward to leveraging our expertise in blockchain and financial technology, collaborating with our partners to explore the promising potentials offered by the new currency, thereby contributing to the innovative efforts in the UAE.
For her part, Hanaa Al Rostamani, CEO of First Abu Dhabi Bank, stated that First Abu Dhabi Bank is proud to participate as a founding member in launching this pioneering technology that contributes to solidifying the UAE's position on the global innovation map, opening new horizons for the development of the thriving and growing financial technology sector.
The stablecoin is expected to bring about a qualitative transformation in payment transactions through blockchain technology, positively impacting various economic sectors and enhancing the efficiency and reliability of financial transactions for consumers and businesses within the country.
For his part, Guillaume De La Tour, CEO of "ADI", stated that the launch of the new stablecoin represents an important milestone in the UAE's journey towards building a more inclusive economy reliant on digital technologies. By leveraging our blockchain technology, we will enable secure, transparent, and efficient transactions on a large scale, relying on locally developed technology in the UAE, which enhances our pride in supporting this ambitious initiative that reflects the essence of our mission and vision aimed at driving sustainable digital transformation globally.
The new stablecoin is also expected to have a widespread impact on various sectors, including the financial sector and trade exchange, which could lead to increased liquidity in the UAE's financial system, making its launch a significant step towards achieving the country's vision of consolidating its position as a leading global destination for innovation and financial technology.