#AbuDhabiStablecoin

Abu Dhabi is making significant strides in the cryptocurrency space with the recent announcement of a new UAE dirham-backed stablecoin, a collaborative effort by three major entities: the sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), the UAE’s largest lender, and International Holding Company (IHC), a prominent conglomerate. Unveiled on April 28, 2025, this stablecoin, which will operate on the ADI blockchain, aims to be fully regulated by the UAE Central Bank, pending final approval. The initiative builds on the UAE’s progressive digital asset strategy, following the launch of AE Coin, the country’s first dirham-backed stablecoin, in December 2024. Designed to maintain price stability by being pegged to the dirham, the stablecoin is expected to facilitate a wide range of transactions, from everyday consumer payments to machine-to-machine and AI-driven financial operations. By leveraging blockchain technology, the project seeks to enhance transaction efficiency, boost regional liquidity, and strengthen the UAE’s digital infrastructure. This move aligns with Abu Dhabi’s broader vision to position itself as a global hub for blockchain innovation, supported by a robust regulatory framework from the Central Bank and the Abu Dhabi Global Market. The stablecoin’s introduction could accelerate digital currency adoption across sectors, reinforcing the UAE’s role as a fintech leader in the Middle East.