[](https://cointelegraph.com/news/trio-of-abu-dhabi-institutional-giants-team-up-for-new-bank-backed-stablecoin)
Abu Dhabi is taking significant strides in the digital finance arena with the proposed launch of a dirham-pegged stablecoin, marking a pivotal development in the United Arab Emirates' (UAE) financial landscape. ([Abu Dhabi institutional giants team up ...](https://cointelegraph.com/news/trio-of-abu-dhabi-institutional-giants-team-up-for-new-bank-backed-stablecoin?utm_source=chatgpt.com))
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### 🇦🇪 Abu Dhabi's Dirham-Pegged Stablecoin Initiative
A consortium comprising Abu Dhabi's sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC) has announced plans to introduce a stablecoin backed by the UAE dirham. This digital currency aims to facilitate seamless digital transactions within the UAE and potentially across the broader Gulf region. The initiative is currently pending regulatory approval from the Central Bank of the UAE, which has recently shown openness to such innovations by granting preliminary licenses for dirham-pegged stablecoins. ([Abu Dhabi institutional giants team up ...](https://cointelegraph.com/news/trio-of-abu-dhabi-institutional-giants-team-up-for-new-bank-backed-stablecoin?utm_source=chatgpt.com), [UAE stablecoin issuer gets nod from central bank](https://cointelegraph.com/news/uae-central-bank-aed-stablecoin-approval?utm_source=chatgpt.com))
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### 🏦 Regulatory Framework for Fiat-Referenced Tokens (FRTs)
To ensure stability and trust in the burgeoning digital asset space, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has proposed a comprehensive regulatory framework for fiat-referenced tokens (FRTs). reduce costs, and bolster its position in the global digital economy. ([Tether to launch stablecoin pegged to UAE's
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As Abu Dhabi moves forward with its stablecoin project, the financial world .