Three Abu Dhabi Giants plan Stablecoin backed by UAE's Currency.
Abu Dhabi Institutional Giants team up for dirham Stablecoin.
If it gets the nod from United Arab Emirates regulators new digital currency expected to modernize transactions among consumers, businesses.
First Abu Dhabi Bank (FAB), the UAE's biggest lender by assets, has teamed up with UAE sovereign wealth fund ADQ and holding company IHC to launch a dirham backed Stablecoin.
The Stablecoin will be used as a digital currency by consumers, businesses and institutions - subject to regulatory approvals. It will be issued by FAB and fully regulated by the Central Bank of the UAE, the three entities said on Monday.
The move is part of a strategy to enhance the UAE's digital economy and modernize financial transactions. It is in line with the UAE's vision of establishing itself as a Fintech and innovation hub.
"The launch of the Stablecoin marks a pivotal step in our commitment to strengthening the UAE's digital infrastructure ecosystem" said Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ.