#AbuDhabiStablecoin Abu Dhabi Launches Dirham-Backed Stablecoin in Partnership with ADQ, IHC, and FAB
In a strategic move to position itself as the global epicenter of cryptocurrencies backed by national currencies, Abu Dhabi announced this Monday the creation of a regulated stablecoin backed by the Emirati dirham (AED). The initiative is backed by three local financial giants: the Abu Dhabi Sovereign Fund (ADQ), the conglomerate International Holding Company (IHC), and First Abu Dhabi Bank (FAB), under the direct supervision of the Central Bank of the UAE.
The new stablecoin, whose official name will be revealed in the coming weeks, will be fully backed by dirham reserves and designed to facilitate secure, fast, and volatility-free transactions in the digital ecosystem. With this measure, the United Arab Emirates (UAE) seeks to attract blockchain investments, promote financial innovation, and consolidate its leadership as a cryptoasset hub in the Middle East.
Regulation and Trust
Unlike other global stablecoins, this project will operate under a clear regulatory framework, ensuring transparency and compliance with anti-money laundering and counter-terrorist financing regulations. The UAE Central Bank will oversee every phase, from issuance to circulation, guaranteeing a 1:1 peg with the dirham.
"This is a crucial step in integrating the digital economy with the traditional financial system, offering security for both institutions and end-users," stated a senior FAB executive during the launch.
Key Partners
- ADQ: The sovereign wealth fund will contribute its expertise in strategic investments and economic diversification.
- IHC: The conglomerate, one of the most valuable in the region, will drive commercial adoption of the stablecoin.
- FAB: The UAE's largest bank will guarantee the solvency and liquidity of the digital asset.