#AbuDhabiStablecoin Abu Dhabi is making significant strides in the digital currency landscape with the introduction of *AE Coin*, the UAE's first *dirham-backed stablecoin*. Developed by AED Stablecoin LLC, AE Coin has received in-principle approval from the Central Bank of the UAE under the “Payment Token Services Regulation” (Circular No. 2/2024) [1] .

AE Coin is fully backed by the UAE dirham, ensuring stability and minimizing the volatility commonly associated with cryptocurrencies. This stablecoin aims to revolutionize financial services by offering secure, seamless payment solutions and fostering the growth of the UAE’s digital economy. It is designed to support a range of applications, from everyday transactions to decentralized finance (DeFi) platforms [1] .

The launch of AE Coin aligns with the UAE's Digital Government Strategy 2025, highlighting the nation's commitment to embracing innovative financial technologies and enhancing the efficiency of its financial services sector [1] .

In addition to AE Coin, global stablecoin issuer Tether has announced plans to develop a UAE dirham-pegged stablecoin in collaboration with Abu Dhabi-based Phoenix Group. This move is expected to further solidify the UAE's position as a leading hub for digital assets and blockchain innovation