#AbuDhabiStablecoin Abu Dhabi is making significant strides in the stablecoin market with a new dirham-pegged stablecoin project. Here's what's happening ¹:

- *Partnership*: Three major Abu Dhabi institutions, ADQ (sovereign wealth fund), First Abu Dhabi Bank (FAB), and International Holding Company (IHC), have partnered to launch a dirham-backed stablecoin regulated by the UAE's central bank.

- *Regulatory Approval*: The stablecoin is pending regulatory approval and will operate on the ADI blockchain, created by the ADI Foundation, a nonprofit organization dedicated to advancing blockchain technology.

- *Use Cases*: The stablecoin aims to support machine-to-machine and artificial intelligence transactions, strengthening digital infrastructure and placing the UAE at the forefront of global blockchain innovation.

- *Market Impact*: This move could challenge US dollar-denominated stablecoins, which currently dominate the market with a capitalization of over $230 billion.

- *Other Developments*: Circle, the issuer of USDC, has also received in-principle approval from Abu Dhabi's Financial Services Regulatory Authority (FSRA) to operate as a money services provider, further solidifying the UAE's position in the stablecoin market ².

Additionally, the UAE central bank has approved a licensing system for stablecoins, which will oversee the issuance, licensing, and supervision of dirham-backed payment tokens ³.