#AbuDhabiStablecoin
**Abu Dhabi Launches Dirham-Backed Stablecoin to Boost Digital Economy**
Abu Dhabi is set to revolutionize its financial sector with a new **dirham-backed stablecoin**, developed by three major entities: sovereign wealth fund **ADQ**, conglomerate **IHC**, and **First Abu Dhabi Bank (FAB)**. Fully regulated by the UAE Central Bank, the stablecoin aims to enhance digital payments, financial inclusion, and blockchain innovation .
### **Key Features:**
- **1:1 Dirham Peg:** Ensures price stability, reducing crypto volatility .
- **Regulated & Secure:** Complies with UAE’s Payment Token Services Regulation .
- **Wide Use Cases:** Supports everyday transactions, remittances, and emerging tech like AI and IoT .
### **Why It Matters?**
The initiative strengthens the UAE’s position as a **global crypto hub**, following the earlier launch of **AE Coin** in December 2024 . By leveraging blockchain, Abu Dhabi aims to attract investment, streamline cross-border payments, and drive fintech growth .
This move signals the UAE’s commitment to a **digitally driven economy**, setting a benchmark for other nations .