#AbuDhabiStablecoin Abu Dhabi is making significant strides in the stablecoin space with several developments underway.

- *Dirham-Pegged Stablecoin*: A consortium of major Abu Dhabi institutions, including ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC), are teaming up to launch a dirham-pegged stablecoin. This stablecoin will be regulated by the UAE's central bank and backed by the dirham, aiming to support advanced use cases like machine-to-machine communication and artificial intelligence. It will operate on the ADI blockchain, created by the ADI Foundation ¹ ².

- *Circle's Expansion*: Circle, the issuer of the USDC stablecoin, has received in-principle approval from Abu Dhabi regulators to operate as a money services provider. This approval marks a significant step in Circle's Middle East expansion strategy, allowing it to tap into the region's growing demand for stablecoins. Circle has also partnered with Hub71, Abu Dhabi's global tech ecosystem, to strengthen innovation in digital assets ³ ⁴.

- *Regulatory Progress*: The UAE's central bank has given the green light to AE Coin, a digital currency tied to the UAE's currency, the dirham. Additionally, Tether has announced plans to launch a stablecoin pegged to the UAE dirham (AED), further expanding its presence in the Middle East ⁵.

These developments highlight Abu Dhabi's growing importance as a hub for financial technology and digital assets, with a focus on innovation, regulatory clarity, and financial inclusion.