#AbuDhabiStablecoin Abu Dhabi is making significant strides in the digital asset space with two major developments: the launch of a dirham-backed stablecoin and a substantial investment in Binance.
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🇦🇪 Dirham-Backed Stablecoin Initiative
On April 28, 2025, three of Abu Dhabi’s leading financial entities—ADQ (a sovereign wealth fund), International Holding Company (IHC), and First Abu Dhabi Bank (FAB)—announced plans to introduce a stablecoin pegged to the UAE dirham. This digital currency will operate on the domestically developed ADI blockchain and will be fully regulated by the Central Bank of the UAE.
The stablecoin aims to serve as a reliable digital payment method across various sectors, including everyday consumer transactions, business operations, and institutional dealings. Additionally, it is designed to support emerging technologies such as machine-to-machine (M2M) transactions and AI-driven finance.
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💰 Binance's $2 Billion Investment from Abu Dhabi's MGX
In a separate development, Binance has secured a $2 billion investment from MGX, an Abu Dhabi-based investment firm. This marks Binance's first institutional investment and is considered one of the largest funding deals in the cryptocurrency industry. The investment was made entirely in stablecoins, though the specific type was not disclosed.
MGX, chaired by Sheikh Tahnoon bin Zayed al-Nahyan, has traditionally focused on AI infrastructure but is now expanding into blockchain technology. This move aligns with Abu Dhabi's broader strategy to position itself as a global hub for digital assets and fintech innovation.
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These initiatives underscore Abu Dhabi's commitment to integrating digital assets into its financial ecosystem, fostering innovation, and enhancing its position in the global fintech landscape.