The sovereign stablecoin launched recently by Abu Dhabi marks a new phase in the global cryptocurrency market where sovereign power deeply participates. As a core hub for fintech innovation in the Middle East, Abu Dhabi will leverage its substantial oil capital and financial openness policies to upgrade stablecoins from "grassroots tools" to "national strategic infrastructure," having a profound impact on the virtual currency market and the international financial system.

**On the crypto market: Reshaping trust and liquidity**

The Abu Dhabi stablecoin, backed by sovereign credit, may disrupt the current stablecoin landscape dominated by private entities such as Tether (USDT) and Circle (USDC). Its design, pegged to the US dollar or a basket of currencies, combined with the reserves supported by the Abu Dhabi Sovereign Wealth Fund, will attract traditional financial institutions to accelerate their entry, enhancing the liquidity and stability of the cryptocurrency market. Meanwhile, Middle Eastern capital entering fields such as DeFi and cross-border payments through stablecoins may trigger a new wave of compliance-driven innovation.