#AbuDhabiStablecoin
Abu Dhabi is making significant strides in the digital currency space with the introduction of a new dirham-backed stablecoin. This initiative is a collaborative effort by three major entities: the sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC).
Key Features of the Abu Dhabi Stablecoin
Regulatory Oversight: The stablecoin will be regulated by the Central Bank of the UAE, ensuring compliance with national financial regulations.
Issuance: FAB, the UAE's largest bank, is set to issue the stablecoin, pending final regulatory approval.
Technological Infrastructure: The stablecoin will operate on the ADI blockchain, developed by the non-profit ADI Foundation. This blockchain aims to facilitate secure and efficient digital transactions.
Use Cases: Designed for a broad range of applications, the stablecoin will support everyday transactions for consumers and businesses, as well as advanced use cases like machine-to-machine and AI-driven payments.
Other Dirham-Backed Stablecoin Initiatives
In addition to the Abu Dhabi initiative, other dirham-pegged stablecoins have emerged:
DRAM Stablecoin: Launched by Distributed Technologies Research (DTR), DRAM is an ERC-20 token backed by the UAE dirham. It is available on decentralized platforms like Uniswap and PancakeSwap. However, it's not currently offered in the UAE or Hong Kong due to regulatory constraints.
Tether's Dirham Stablecoin: Tether has announced plans to introduce a dirham-pegged stablecoin, aiming to provide an alternative to the U.S. dollar in global trade. This initiative is pending approval from the UAE Central Bank.
These developments underscore the UAE's commitment to becoming a global hub for digital assets and blockchain innovation.