#AbuDhabiStablecoin Abu Dhabi is making significant strides in the digital asset space with the launch of a new dirham-backed stablecoin. Here's what's happening ¹ ²:

- *Partnership*: Three major Abu Dhabi institutions, ADQ (sovereign wealth fund), First Abu Dhabi Bank (FAB), and International Holding Company (IHC), are partnering to develop this stablecoin, subject to regulatory approval.

- *Blockchain*: The stablecoin will operate on the ADI blockchain, a domestically developed technology, and will be fully backed by the UAE dirham, ensuring stability and confidence in its value.

- *Use Cases*: It aims to provide a reliable digital currency for everyday scenarios, businesses, and institutions, supporting emerging digital use cases like machine-to-machine and artificial intelligence transactions.

- *Regulation*: The stablecoin will be regulated by the UAE's central bank, ensuring oversight and compliance with financial standards.

Additionally, Tether, a leading stablecoin issuer, has also announced plans to launch a dirham-pegged stablecoin in collaboration with Phoenix Group PLC, aiming to provide a secure and efficient means of transacting in the UAE dirham ³.

These developments reflect Abu Dhabi's efforts to ¹ ⁴:

- *Advance Digital Infrastructure*: Strengthen the UAE's digital economy and position itself as a global hub for fintech innovation.

- *Increase Adoption*: Encourage the use of digital currencies and blockchain technology in various sectors.

- *Improve Financial Inclusion*: Provide access to financial services for individuals and businesses, particularly in emerging markets.