#AbuDhabiStablecoin Three major institutions in Abu Dhabi, ADQ (sovereign wealth fund), International Holding Company (IHC), and First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates (UAE) by assets, announced the launch of a new stablecoin fully backed by the UAE's official currency, the dirham.

This stablecoin will be under the full supervision and regulation of the UAE Central Bank, and is expected to bring stability to digital transactions that have tended to be volatile.

Stablecoin is a cryptocurrency whose value is stable because it is pegged to certain assets such as the US dollar (US$), gold, or even a collection of other assets

This project will use ADI blockchain technology, a digital infrastructure developed by the ADI Foundation and has collaborated with more than 20 countries.

According to a joint official statement, quoted by criptonews, Tuesday (29/4), this digital currency will be issued by FAB and its use includes consumers, businesses, and institutions.

The stablecoin also supports future applications such as machine-to-machine transactions and artificial intelligence-based processes.

FAB Group CEO Hana Al Rostamani called the launch a “transformational step” that will revolutionize the way transactions are conducted in the UAE, using trusted blockchain technology.

ADQ CEO Mohamed Alsuwaidi added that the project is an important step in strengthening the country’s digital infrastructure, offering a secure, efficient and scalable solution.

Stablecoins are generally digital assets whose value is pegged to a fiat currency, such as the dirham, providing greater stability than cryptocurrencies such as Bitcoin.

This makes them an attractive alternative for large-scale digital transactions.

The move is also in line with the UAE’s national digital strategy, including the “Digital Dirham” initiative launched by the Central Bank in March 2023. The UAE has introduced specific regulations for stablecoins and an official symbol for the Digital Dirham,