#AbuDhabiStablecoin Abu Dhabi’s Dirham-Backed Stablecoin
Abu Dhabi is advancing its digital asset strategy with a new UAE dirham-backed stablecoin, announced on April 28, 2025, by three major institutions: sovereign wealth fund ADQ, conglomerate International Holding Company (IHC), and First Abu Dhabi Bank (FAB). Here are the key details:
Overview:
The stablecoin will be fully regulated by the UAE Central Bank (CBUAE) and issued by FAB, pending regulatory approval. It aims to modernize payment systems and facilitate blockchain-based transactions for consumers, businesses, and institutions.
It will operate on the ADI blockchain, a domestically developed technology by the ADI Foundation, ensuring a compliant and secure distribution network.
The initiative builds on the UAE’s “Digital Dirham” strategy, launched in March 2023, which introduced regulatory frameworks for stablecoins to boost adoption.
Purpose and Impact:
Unlike Bitcoin, which Arizona is exploring as a reserve asset for its volatility and inflation-hedging potential, this stablecoin is pegged to the UAE dirham (itself pegged to the U.S. dollar), offering stability for everyday transactions and reducing exposure to crypto market fluctuations.
It aims to enhance the UAE’s digital economy, with ADQ’s $225 billion in assets backing the project as part of broader investments in digital infrastructure.
Leaders like Mohamed Hassan Alsuwaidi (ADQ) and Hana Al Rostamani (FAB) emphasized its role in revolutionizing blockchain payments and strengthening the UAE’s position as a global crypto hub.
Context and Previous Efforts:
In December 2024, the UAE launched AE Coin, its first dirham-backed stablecoin, approved by the CBUAE, signaling a national push for digital currencies.
The Abu Dhabi Global Market (ADGM) recognized Tether’s USDT as a virtual asset in December 2024 and signed an MoU with Chainlink in March 2025 to advance tokenization frameworks, reflecting a crypto-friendly regulatory environment.
Abu Dhabi’s Mubadala Investment Company also disclosed a $436.9 million.
DYOR