#AbuDhabiStablecoin Abu Dhabi is taking significant steps in the realm of stablecoins, with several key developments unfolding:

Dirham-Backed Stablecoin Project:

* A consortium of major Abu Dhabi institutions, including the Abu Dhabi sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC), has announced plans to launch a stablecoin pegged to the UAE Dirham (AED).

* This stablecoin will be fully regulated by the Central Bank of the UAE (CBUAE) and issued by FAB, the UAE's largest bank, pending regulatory approval.

* The aim is for this digital currency to be used by consumers, businesses, and institutions for domestic and cross-border payments, as well as for emerging applications like machine-to-machine and AI transactions.

* The stablecoin will operate on the ADI blockchain, a technology developed within the UAE by the ADI Foundation. This is intended to ensure security and transparency within the ecosystem.

* The initiative is part of the UAE's strategy to enhance its digital economy, modernize financial transactions, and position itself as a leading fintech and innovation hub.

Regulatory Landscape:

* The CBUAE has established regulations for stablecoins, known as the "Payment Token Services Regulation," which came into effect in July 2024. This framework governs the offering and engagement in payment token services within the UAE (excluding the financial free zones like DIFC and ADGM).