#AbuDhabiStablecoin

Abu Dhabi has announced the launch of a new dirham-backed stablecoin, AE Coin, as part of the UAE’s broader strategy to become a global hub for digital assets. This initiative is a collaboration between major Abu Dhabi institutions, including the sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC). AE Coin will be fully regulated by the Central Bank of the UAE and pegged 1:1 to the UAE Dirham (AED), ensuring price stability and reducing the volatility commonly associated with cryptocurrencies. 

The introduction of AE Coin is expected to streamline cross-border transactions, reduce reliance on traditional banking systems, and promote financial inclusion. It also aligns with the UAE’s efforts to diversify its economy and embrace technological innovations in the financial sector. 

In a related development, Binance has secured a $2 billion investment from MGX, a state-owned technology investment firm in Abu Dhabi. The deal, paid in stablecoins, represents the largest institutional investment ever made in a crypto company. It also marks MGX’s entry into the fintech sector, reinforcing its commitment to digital finance and blockchain technology. 

This strategic move by Abu Dhabi underscores the UAE’s ambition to position itself as a leader in the global digital economy, fostering innovation and attracting international investments in the cryptocurrency space.