Abu Dhabi has stood out as a center for innovation in digital assets, with significant advances in the development and regulation of stablecoins. Below, I present an updated overview of the main initiatives involving stablecoins in the region:
🪙 AE Coin: The First Regulated Stablecoin of the UAE
In December 2024, the Central Bank of the United Arab Emirates (CBUAE) approved AE Coin, making it the first regulated stablecoin in the country. Backed 1:1 with the UAE dirham and fully supported by local reserves, AE Coin aims to provide secure, fast, and low-volatility digital transactions. It is aimed at both consumers and businesses, focusing on payments and applications in decentralized finance (DeFi).
🏦 New Dirham-Backed Stablecoin: Partnership between IHC, ADQ, and FAB
In April 2025, three major institutions in Abu Dhabi — International Holding Company (IHC), Abu Dhabi Developmental Holding Company (ADQ), and First Abu Dhabi Bank (FAB) — announced plans to launch a new dirham-backed stablecoin. The project will be fully regulated by the CBUAE and issued by FAB, the largest bank in the UAE. The stablecoin will utilize the ADI blockchain, developed by the ADI Foundation, and aims to facilitate secure and efficient payments, both domestic and international.
🌐 Tether’s USDT Recognized as a Virtual Asset in Abu Dhabi
In addition to dirham-backed stablecoins, Abu Dhabi has also recognized USDT from Tether as an Accepted Virtual Asset (AVA) within the Abu Dhabi Global Market (ADGM). This approval allows licensed financial service providers in the ADGM to offer services related to USDT, integrating it into the region's regulated financial ecosystem.
📜 Regulation and Strategic Vision
The CBUAE has adopted a proactive approach to the regulation of digital assets. In 2024, it approved a licensing system for stablecoins, establishing clear guidelines for their issuance and operation.