#AbuDhabiStablecoin Abu Dhabi has launched a dirham-backed stablecoin, a digital currency pegged 1:1 to the UAE dirham, to power the country's digital asset strategy. This initiative is a collaboration between ADQ, International Holding Company (IHC), and First Abu Dhabi Bank (FAB), regulated by the UAE Central Bank.

*Key Features:*

- *Backing:* The stablecoin is backed by the UAE dirham, ensuring stability and trust.

- *Blockchain:* It operates on the ADI blockchain, developed by the ADI Foundation, enabling secure, transparent, and efficient transactions.

- *Usage:* The stablecoin will be used for various transactions, including machine-to-machine and AI-driven processes.

- *Regulation:* The UAE Central Bank regulates the stablecoin, providing oversight and stability.

*Goals and Implications:*

- *Digital Economy:* The stablecoin aims to advance the UAE's digital economy plans and position the country as a global hub for blockchain innovation and fintech.

- *Cross-Border Trade:* It could enhance cross-border trade, facilitate remittances, and support Web3 and fintech ecosystems.

- *Credibility:* Unlike many stablecoins, the UAE's approach emphasizes direct, clear, and sovereign asset backing, offering new credibility in the sector ¹ ².

*Partnerships and Rollout:*

- *Issuance:* FAB will issue the stablecoin once it receives regulatory clearance.

- *Phased Rollout:* The stablecoin will be rolled out in phases to ensure stability and gain public trust.

- *Retail Use:* Initially, it will be used for corporate clients, with plans to open it up for retail use ¹.