Abu Dhabi is making significant strides in the digital finance sector with the introduction of a new dirham-backed stablecoin. This initiative is a collaborative effort by three major institutions: International Holding Company (IHC), Abu Dhabi Developmental Holding Company (ADQ), and First Abu Dhabi Bank (FAB).
Key Features of the Dirham-Backed Stablecoin
Regulatory Oversight: The stablecoin will be fully regulated by the Central Bank of the United Arab Emirates (CBUAE), ensuring compliance with national financial regulations.
Issuance and Technology: FAB, the UAE's largest bank, will issue the stablecoin, which will operate on the ADI blockchain—a platform developed by the ADI Foundation to support secure and efficient digital transactions.
Use Cases: The stablecoin is designed to facilitate various applications, including machine-to-machine transactions and AI-driven payment flows, aiming to revolutionize digital payments in the region.
Strategic Goals: This move aligns with the UAE's broader strategy to become a global hub for digital assets and blockchain innovation, enhancing the country's digital infrastructure and financial inclusion.
Additional Developments
In a related development, Circle, the issuer of the USDC stablecoin, has received in-principle approval from Abu Dhabi's Financial Services Regulatory Authority (FSRA) to operate as a money services provider in the region. This approval marks a significant step in Circle's expansion into the Middle East and underscores Abu Dhabi's commitment to fostering a robust digital asset ecosystem.
These initiatives reflect Abu Dhabi's proactive approach to embracing digital finance and its ambition to lead in the global blockchain and cryptocurrency landscape.
