#AbuDhabiStablecoin

Abu Dhabi is advancing its position as a global crypto hub with the upcoming launch of AE Coin, the UAE's first fully regulated dirham-backed stablecoin. In December 2024, AED Stablecoin LLC secured final approval from the Central Bank of the UAE (CBUAE) under the Payment Token Services Regulation (Circular No. 2/2024), marking a pivotal moment in the nation's digital currency landscape. AE Coin is pegged 1:1 to the UAE dirham, ensuring stability and minimizing the volatility typically associated with cryptocurrencies. Each coin is fully backed by reserves held within the UAE, providing a secure and transparent medium of exchange. The stablecoin is designed to facilitate seamless transactions across various sectors, including decentralized finance (DeFi), e-commerce, and remittances, aligning with the UAE's Digital Government Strategy 2025. In a strategic move to bolster its position in the global crypto market, Abu Dhabi's investment vehicle, MGX, acquired a $2 billion minority stake in cryptocurrency exchange Binance. This investment, made using stablecoins, reflects the UAE's commitment to advancing blockchain technology and digital finance. AE Coin's launch represents a significant step toward integrating digital currencies into mainstream financial systems, offering a secure, stable, and regulated alternative to traditional cryptocurrencies. With its backing by the UAE dirham and adherence to stringent regulatory standards, AE Coin is poised to play a pivotal role in the evolution of the UAE's digital economy.