Abu Dhabi's sovereign wealth fund Abu Dhabi Development Holding Company (ADQ), the largest bank in the United Arab Emirates First Abu Dhabi Bank (FAB), and the large conglomerate International Holding Company (IHC) jointly announced on Monday a plan to launch a stablecoin pegged to the UAE's fiat currency Dirham (AED), pending approval from regulators.
According to a press release, the stablecoin will be issued by FAB, with the Dirham as the backing asset and regulated by the Central Bank of the UAE. ADQ stated that its goal is to change the convenience of payments and commerce locally and globally, positioning the UAE at the 'forefront of global blockchain innovation' while strengthening the country's digital infrastructure. The stablecoin will also support applications such as machine-to-machine and artificial intelligence.
If approved by regulators, the new Dirham stablecoin will operate on the ADI blockchain, which is developed by the ADI Foundation, a non-profit organization committed to assisting the financial system and government in adopting blockchain technology.
ADQ was established in 2018 and is a sovereign wealth fund focused on critical infrastructure and global supply chains. IHC is one of the largest investment companies and conglomerates in the UAE, with a market value of over $243 billion, and is associated with the ruling family of Abu Dhabi, the capital of the UAE. FAB is the largest bank in the UAE, formed in 2017 from the merger of First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD).
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