Hashtag #AbuDhabiStablecoin is actively being discussed in the crypto community today due to a large initiative by the UAE regarding the launch of a new stablecoin pegged to the dirham (AED).

🔹 What is happening?

On April 28, 2025, three leading institutions in Abu Dhabi — ADQ (sovereign investment fund), First Abu Dhabi Bank (FAB), and International Holding Company (IHC) — announced joint plans to issue a stablecoin fully backed by the dirham and regulated by the Central Bank of the UAE.

🔸 Why is this needed?

The new stablecoin aims to:

• Provide a reliable digital payment method for citizens, businesses, and government institutions.

• Support transactions between machines and artificial intelligence.

• Operate on the ADI blockchain, developed by the local ADI Foundation, which guarantees security and transparency.

🌍 What does this mean for the market?

• The UAE aims to become a global hub for blockchain innovation, offering an alternative to stablecoins pegged to the US dollar.

• This is also competition for USDC and Tether, which already have ambitions in the region. For example, Circle recently received preliminary approval from the Abu Dhabi regulator to expand its operations in the Middle East.