A new digital currency project could reshape the UAE’s financial future — if regulators give it the green light.
According to a joint announcement on April 28, three of Abu Dhabi’s most influential entities — sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC) — have partnered to launch a dirham-pegged stablecoin. The proposed currency would be regulated by the UAE’s central bank and run on the ADI blockchain, a network developed by the nonprofit ADI Foundation to support blockchain integration in traditional financial systems.
If approved, the stablecoin will be backed 1:1 by the UAE’s official currency, the dirham, and offer utility in AI-driven automation and machine-to-machine transactions — signaling a leap toward smarter, programmable finance.
Building a Local Blockchain Ecosystem
This stablecoin initiative is part of the UAE’s broader strategy to strengthen its digital financial infrastructure and emerge as a global blockchain innovation hub. ADQ, established in 2018, focuses on critical infrastructure and supply chain investments. FAB, formed from the 2017 merger of First Gulf Bank and National Bank of Abu Dhabi, is the country’s largest financial institution. And IHC, valued at over $243 billion, plays a major role in regional markets and has ties to the ruling family.
Their collaboration shows a serious intent to not just follow the blockchain trend but lead it — on home turf, with home currency.
A Global Shift Away from the Dollar?
This move comes as more countries look to create their own stablecoins — and potentially loosen the US dollar’s grip on the crypto market.
The current stablecoin landscape is heavily dominated by US-pegged tokens. In April alone, the total market cap of U.S. dollar-backed stablecoins surpassed $230 billion, with Tether (USDT) and USDC making up about 90% of that total.
But the UAE isn’t alone in exploring alternatives. Russia, for instance, is reportedly developing its own stablecoin in response to sanctions and wallet freezes by U.S. authorities. Meanwhile, a report from Citigroup suggests that while USD-backed stablecoins may continue to dominate in volume, more non-U.S. countries are likely to focus on launching national stablecoins or central bank digital currencies (CBDCs).
Why It Matters
If this project secures regulatory approval, it could redefine how value is transferred in the Middle East and provide a strong model for government-backed stablecoins. More than just a tool for transactions, a dirham-backed coin could anchor future applications in decentralized finance (DeFi), AI integrations, and cross-border payments.
This collaboration also signals a maturing perspective on blockchain from state-level institutions. Instead of speculative hype, the UAE appears to be betting on stability, transparency, and sovereignty — in digital form.