#AbuDhabiStablecoin Abu Dhabi is set to launch a dirham-backed stablecoin, marking a significant step in the UAE's digital finance evolution. The initiative is a collaboration between Abu Dhabi's sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC). Pending regulatory approval from the UAE Central Bank, the stablecoin will be issued by FAB and operate on the ADI blockchain, developed by the ADI Foundation. ([UAE Launches Dirham-Backed Stablecoin to Strengthen Digital ...](https://meatechwatch.com/2025/04/29/uae-launches-dirham-backed-stablecoin-to-strengthen-digital-finance-and-crypto-leadership/?utm_source=chatgpt.com), [Abu Dhabi institutions plan a dirham-pegged stablecoin](https://dig.watch/updates/abu-dhabi-institutions-plan-a-dirham-pegged-stablecoin?utm_source=chatgpt.com))
Designed to facilitate secure and efficient digital payments, the stablecoin aims to support a range of applications, including machine-to-machine transactions and AI-driven processes. This move aligns with the UAE's broader strategy to position itself as a global hub for blockchain innovation and digital finance. ([UAE Launches Dirham-Backed Stablecoin to Strengthen Digital ...](https://meatechwatch.com/2025/04/29/uae-launches-dirham-backed-stablecoin-to-strengthen-digital-finance-and-crypto-leadership/?utm_source=chatgpt.com), [Digital Dirham: UAE to Launch Stablecoin, Regulated by Central Bank](https://yellow.com/news/digital-dirham-uae-to-launch-stablecoin-regulated-by-central-bank?utm_source=chatgpt.com))
The UAE Central Bank's prior approval of a stablecoin licensing system underscores the country's commitment to fostering a regulated and robust digital currency ecosystem. ([UAE central bank approves licensing system for stablecoins](https://cointelegraph.com/news/uae-stablecoin-licensing-system?utm_source=chatgpt.com))
As the UAE continues to embrace digital transformation, the introduction of a dirham-backed stablecoin could set a precedent for other nations exploring sovereign-backed digital currencies. ([Digital Dirham: