What is a Stablecoin?

A stablecoin is a type of cryptocurrency that is designed to have its value linked to a more stable asset, such as traditional fiat currencies (like the US dollar or the UAE dirham), gold, or other assets. The goal is to provide a digital currency that has the advantages of cryptocurrencies (such as transaction speed and low fees) while reducing the large price volatility that other cryptocurrencies like Bitcoin and Ethereum are known for.

What does "Abu Dhabi stable coin" mean?

This term specifically refers to a new initiative in Abu Dhabi to launch a stable digital currency linked to the UAE dirham. On April 28, 2025, three major institutions in Abu Dhabi - Abu Dhabi Developmental Holding Company (ADQ), International Holding Company (IHC), and First Abu Dhabi Bank (FAB) - announced plans to launch this new stablecoin.