#AbuDhabiStablecoin Abu Dhabi doubles down on cryptocurrencies: the wealth fund, FAB and IHC join forces for a new stablecoin.

DUBAI, April 28 (Reuters) - Abu Dhabi's sovereign fund ADQ and the conglomerate IHC (IHC.AD), open a new tab, and the largest lender in the United Arab Emirates by assets, First Abu Dhabi Bank (FAB) (FAB.AD), open a new tabare planning to launch a new stablecoin backed by dirhams, they said on Monday, as the Gulf nation deepens its investment in cryptocurrencies.

The stablecoin, which will be fully regulated by the Central Bank of the United Arab Emirates, will be issued by FAB subject to regulatory approval, the three companies said in a statement.

"This stablecoin will be used as a reliable digital currency in a wide range of everyday situations, by citizens and consumers, businesses, and institutions," they stated.

Stablecoins are digital tokens designed to maintain a constant value backed by traditional currencies like the US dollar. They have experienced rapid growth, both as a form of payment and among traders looking to buy and sell outside the regulated banking system.

The United Arab Emirates, which aims to become a global hub for digital assets, has rushed to enable cryptocurrency payments, boosting adoption rates and transaction volumes.

In December, the state introduced its first stablecoin backed by United Arab Emirates dirhams, AE Coin, and last month the investment group MGX made a $2 billion investment in Binance, one of the largest deals in the history of the cryptocurrency industry.