#AbuDhabiStablecoin

** Abu Dhabi to Launch Dirham-Backed Stablecoin **

Abu Dhabi's sovereign wealth fund, ADQ, along with conglomerate IHC, and First Abu Dhabi Bank (FAB), the UAE's largest lender, have announced their plans to introduce a new stablecoin backed by the UAE dirham.

This initiative, revealed on Monday, signifies the Gulf nation's increasing engagement in the cryptocurrency sector.

The forthcoming stablecoin will operate under the full regulatory oversight of the UAE's central bank and will be issued by FAB, pending the necessary regulatory approvals, according to a joint statement from the three entities.

The companies envision the stablecoin as a dependable digital currency for various everyday uses, catering to individuals, consumers, businesses, and institutions alike.

This development follows the UAE's ambition to establish itself as a global hub for digital assets. The nation has been proactive in facilitating cryptocurrency payments, which has contributed to higher adoption rates and transaction volumes. Notably, the UAE saw the launch of its first dirham-backed stablecoin, AE Coin, in December, and investment group MGX recently made a substantial $2 billion investment in Binance.

Stablecoins, designed to maintain a stable value by being pegged to traditional currencies, have experienced significant growth as payment methods and among traders seeking alternatives to the traditional banking system.