#AbuDhabiStablecoin

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 modernise 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.

“As we move forward towards an increasingly digital and connected economy, the stablecoin will provide a solution that is secure, efficient and scalable, while creating new opportunities for growth and value creation.”

The new digital currency rollout is expected to have a significant impact on finance, commerce, trade and other industries. It will operate on the ADI blockchain, a new technology developed in the UAE by the ADI Foundation.