Abu Dhabi's institutional giants come together to create the stablecoin linked to the dirham
If approved by the regulators of the United Arab Emirates, the stablecoin linked to the dirham and regulated by the central bank will operate on the ADI blockchain.
A trio of major institutions from Abu Dhabi, including the sovereign wealth fund of the Emirate, have joined forces to launch a new stablecoin linked to the dirham.
Abu Dhabi's sovereign wealth fund, ADQ, the largest bank in the United Arab Emirates, First Abu Dhabi Bank (FAB), and the massive conglomerate International Holding Company, have partnered to launch the stablecoin, pending regulatory approval, the three companies said on April 28.
The trio claimed that the stablecoin would be regulated by the UAE central bank and backed by the country's currency, the dirham. Additionally, it would support use cases such as machine-to-machine communication and artificial intelligence.
The goal is to position the United Arab Emirates at the “forefront of global blockchain innovation,” while also strengthening digital infrastructure, according to ADQ.
If approved by the regulators, the new stablecoin will operate on the ADI blockchain, created by the ADI Foundation, a non-profit organization dedicated to helping established financial systems and governments advance and adopt blockchain technology.