#AbuDhabiStablecoin Abu Dhabi Forges Ahead with Dirham-Backed Stablecoin Initiative
Abu Dhabi is solidifying its position as a pioneering hub for digital finance with the announcement of a new initiative to launch a dirham-backed stablecoin. A collaboration between key Abu Dhabi entities – sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC) – aims to introduce a digital currency fully regulated by the UAE Central Bank.
Operating on the ADI blockchain, the stablecoin seeks to revolutionize payments and business transactions both locally and globally. It is designed for use by individuals, businesses, and institutions, and will also support emerging technologies like machine-to-machine communication and AI-driven processes. This move underscores the UAE's commitment to strengthening its digital infrastructure and fostering innovation in the financial technology sector.
Separately, stablecoin issuer Circle, behind USDC, has received in-principle approval from Abu Dhabi Global Market (ADGM) to operate as a money services provider, highlighting the region's proactive approach to stablecoin regulation.
