#AbuDhabiStablecoin Abu Dhabi is making significant strides in the realm of stablecoins, with a clear focus on regulation and innovation. Here's a breakdown of the key developments:

Recent Dirham-Backed Stablecoin Announcement (April 2025):

* A consortium comprising First Abu Dhabi Bank (FAB), the UAE's largest lender, along with the sovereign wealth fund ADQ, and the holding company IHC, announced plans to launch a new stablecoin backed by the UAE Dirham (AED).

* This stablecoin will be fully regulated by the Central Bank of the UAE (CBUAE) and issued by FAB, subject to regulatory approval.

* It aims to modernize transactions for consumers, businesses, and institutions, enhancing the UAE's digital economy and positioning it as a leading fintech hub.

* The stablecoin will operate on the ADI blockchain, a technology developed in the UAE by the ADI Foundation.

* It is intended for a wide range of uses, including everyday payments, business transactions, and emerging digital applications like machine-to-machine and AI payments.

Abu Dhabi Global Market (ADGM) and Stablecoin Regulation:

* The Financial Services Regulatory Authority (FSRA) of the ADGM has been proactive in establishing a regulatory framework for digital assets, including stablecoins referred to as Fiat-Referenced Tokens (FRTs). This framework came into effect on December 5, 2024.

* The ADGM framework aims to balance innovation with financial stability and investor protection.