Abu Dhabi's AE Coin: Pioneering the UAE's Regulated Stablecoin Era
Abu Dhabi has introduced AE Coin, the UAE's first regulated stablecoin pegged to the dirham. Developed by AED Stablecoin LLC, AE Coin received in-principle approval from the Central Bank under the Payment Token Services Regulation, aligning with the UAE's Digital Government Strategy 2025. Fully backed by dirham reserves, AE Coin ensures stability and security, minimizing typical crypto volatility. It integrates seamlessly with decentralized finance (DeFi) platforms, facilitating efficient, low-cost transactions. This initiative underscores the UAE's commitment to becoming a global fintech hub, promoting innovation while ensuring regulatory compliance. Additionally, Tether plans to launch its own dirham-pegged stablecoin in collaboration with Phoenix Group and Green Acorn Investments, further cementing the UAE's position in the digital currency landscape.