Abu Dhabi is pushing forward with its cryptocurrency initiatives through the development of a new dirham-backed stablecoin, announced on April 28, 2025, by ADQ (a sovereign wealth fund), First Abu Dhabi Bank (FAB), and International Holding Company (IHC). Fully regulated by the UAE Central Bank, the stablecoin will run on the ADI blockchain, aiming to streamline digital payments and strengthen the UAE’s digital asset ecosystem.
This initiative builds on the UAE’s earlier launch of AE Coin—its first dirham-backed stablecoin—in December 2024, as part of the Central Bank’s broader “Digital Dirham” strategy introduced in March 2023. Supportive regulations, such as official recognition of stablecoins like USDT (Tether) and USDC (Circle), alongside a $2 billion investment by Abu Dhabi’s MGX in Binance in March 2025, highlight the UAE’s strategic goal to establish itself as a global leader in the crypto space.
