#AbuDhabiStablecoin Abu Dhabi is advancing its digital finance initiatives with plans to introduce a new stablecoin backed by the UAE Dirham (AED). This endeavor is a collaboration among three major institutions: the sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC). The proposed stablecoin aims to facilitate secure, efficient, and low-cost digital payments, pending regulatory approval from the Central Bank of the UAE (CBUAE) .

This initiative follows the earlier approval of AE Coin, the UAE's first dirham-backed stablecoin, launched by AED Stablecoin LLC. AE Coin received in-principle approval from the CBUAE under the Payment Token Services Regulation, marking a significant step in the nation's digital finance ecosystem .

The new stablecoin is expected to operate on the ADI blockchain, supporting applications such as machine-to-machine transactions and AI-driven processes. This development aligns with the UAE's broader strategy to become a global hub for digital assets and blockchain innovation .

These advancements underscore the UAE's commitment to integrating blockchain technology into its financial infrastructure, promoting innovation while ensuring regulatory compliance and financial stability.