**Abu Dhabi Dirham-Backed Stablecoin Initiative**
Abu Dhabi’s sovereign wealth fund ADQ, conglomerate IHC, and First Abu Dhabi Bank (FAB) have announced a collaborative effort to launch a UAE dirham-backed stablecoin, regulated by the UAE Central Bank . This initiative aims to strengthen the UAE’s position as a global digital asset hub, offering a secure, compliant, and stable digital currency for everyday transactions, businesses, and institutions .
The stablecoin will operate on the **ADI blockchain**, a domestically developed platform by the ADI Foundation, ensuring scalability, transparency, and efficiency . Beyond traditional payments, it will support emerging use cases like machine-to-machine transactions and AI-driven financial systems, aligning with the UAE’s vision for a smart economy .
FAB, the UAE’s largest bank, will issue the stablecoin pending regulatory approval, adding institutional credibility . This follows earlier UAE efforts, including the AE Coin launch in December 2024 and a 2 billion dollar investment in Binance by MGX . The project underscores Abu Dhabi’s strategy to diversify its economy, enhance financial inclusion, and attract global fintech talent .
By integrating blockchain with regulated finance, the UAE aims to set a global precedent for digital currency adoption .