#AbuDhabiStablecoin

+Project Overview:

The three main participants – ADQ, IHC, and FAB – announced on April 28, 2025, that they will issue a stablecoin pegged to the AED, to be issued through FAB but directly regulated by the Central Bank of the UAE.

This stablecoin will operate on the ADI blockchain developed by the ADI Foundation, a platform that has partnered with over 20 governments to implement a regulatory-compliant blockchain network.

The goal is to create a fast, low-cost digital payment means for both consumers and businesses in the UAE.

+Operating Mechanism and Technology:

• Pegged 1:1 with AED: each token is backed by actual dirhams, held in reserves at FAB or authorized financial institutions

• Minting/Burning: When users deposit AED into the system, FAB will mint the corresponding amount of tokens; conversely, when users return tokens, they are burned and receive back AED

• ADI Blockchain: a permissioned platform, allowing for participant identity management (KYC/AML), with fast transaction processing capabilities and low fees

+ Applications and Benefits:

• Domestic Payments: promoting cashless transactions, reducing money transfer costs, and payment times

• Supporting Fintech: fintech companies can integrate this stablecoin to develop services such as quick loans, e-wallets, or cross-border payments

• Enhancing UAE's Position: affirming the UAE as an attractive destination for large-scale blockchain projects, attracting investment from international organizations