On April 28, 2023, three major financial institutions in Abu Dhabi – the Sovereign Wealth Fund ADQ, International Holding Company (IHC), and First Abu Dhabi Bank (FAB) announced plans to launch a stablecoin backed by the United Arab Emirates Dirham (AED). This stablecoin will be issued by FAB and operate under the full regulation of the Central Bank of the UAE, aiming to promote the development of the country's digital financial infrastructure.

This stablecoin will be deployed on the ADI blockchain developed by the ADI Foundation, supporting a variety of application scenarios including artificial intelligence and machine-to-machine (M2M) transactions. The project marks an important step for the UAE in the global stablecoin space, aiming to enhance payment efficiency, increase financial inclusion, and solidify its position as a global fintech innovation hub.

For the cryptocurrency market, this initiative in Abu Dhabi could impact the landscape of the dollar-dominated stablecoin market, especially in the Middle East and North Africa region. As the global demand for local currency-backed stablecoins increases, this development in the UAE may trigger similar moves by other countries, promoting the diversification of the global stablecoin market.