Abu Dhabi is making significant strides in the digital currency arena with the introduction of dirham-backed stablecoins, prominently discussed under the #AbuDhabiStablecoin . This initiative is part of the UAE’s broader strategy to position itself as a global hub for digital assets.

Key Developments

  1. New Dirham-Backed Stablecoin Initiative

On April 28, 2025, three major Abu Dhabi entities—sovereign wealth fund ADQ, conglomerate International Holding Company (IHC), and First Abu Dhabi Bank (FAB)—announced plans to launch a stablecoin fully regulated by the Central Bank of the United Arab Emirates (CBUAE). This stablecoin will be pegged to the UAE dirham and aims to facilitate digital payments and enhance the nation’s adoption of digital currencies.

2. AE Coin

AE Coin is the UAE’s first regulated stablecoin backed by the dirham (AED). It has received in-principle approval from the UAE Central Bank, with backing from IHC and First Abu Dhabi Bank. AE Coin will be used for crypto trading, payments, and financial services, supporting the UAE’s digital economy goals.

3. DRAM Stablecoin

DRAM, developed by Distributed Technologies Research (DTR), is an Ethereum-based ERC-20 token pegged to the UAE dirham. Launched on decentralized platforms like Uniswap and PancakeSwap, DRAM is issued by Hong Kong-based DRAM Trust, ensuring that each token is backed by dirham reserves held in regulated financial institutions. While currently not available in the UAE or Hong Kong, discussions are underway to list DRAM on centralized exchanges outside these jurisdictions.

Regulatory Landscape

The Central Bank of the UAE (CBUAE) has been proactive in establishing a regulatory framework for digital currencies. The introduction of dirham-backed stablecoins aligns with the UAE’s efforts to diversify its economy and embrace technological innovations in the financial sector. The CBUAE’s “Digital Dirham” strategy, initiated in March 2023, underscores the nation’s commitment to digital transformation.

Social Media Engagement

  1. The hashtag #AbuDhabiStablecoin is gaining traction on platforms like Binance Square and X (formerly Twitter), where users discuss the implications of government-backed stablecoins on the future of crypto and global payments. This reflects a growing interest in the UAE’s digital currency initiatives and their potential impact on the global financial landscape.