Abu Dhabi witnessed important announcements regarding stablecoins. In a move to enhance the UAE's position as a global hub for digital assets, major Abu Dhabi institutions, including the ADQ sovereign wealth fund, IHC, and First Abu Dhabi Bank (FAB), announced a collaboration to launch a stablecoin backed by the UAE dirham. This new digital currency will be fully regulated by the Central Bank of the UAE and will operate on the ADI blockchain, aiming to facilitate daily transactions and artificial intelligence operations.

This announcement follows Tether obtaining a license in the region in August 2023 and the launch of AE Coin as the first regulated digital currency in the UAE last December. Additionally, the Abu Dhabi Global Market (ADGM) is developing a regulatory framework specifically for fiat-backed stablecoins (FRTs), focusing on stability, transparency, and investor protection. ADGM prohibits algorithmic stablecoins and imposes restrictions on reserve assets.

These developments are significant steps towards integrating stablecoins into the UAE's digital economy, potentially enhancing payment efficiency and fostering innovation in the fintech sector.