#AbuDhabiStablecoin Abu Dhabi is advancing its digital finance initiatives with the planned launch of a UAE dirham-backed stablecoin, marking a significant step in the region's embrace of blockchain technology.

Key Highlights

Collaborating Entities: The initiative is a joint effort by three major Abu Dhabi institutions: the sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC).

Regulatory Oversight: The stablecoin will be regulated by the Central Bank of the United Arab Emirates (CBUAE), ensuring compliance with national financial regulations.

Blockchain Infrastructure: The digital currency will operate on the ADI blockchain, developed by the ADI Foundation, which is designed to support secure and scalable blockchain-based payments.

Issuance: First Abu Dhabi Bank (FAB), the UAE's largest bank, is set to issue the stablecoin, pending final regulatory approval.

Objectives and Impact

The primary goal of this stablecoin is to modernize the UAE's payment systems by providing a secure, efficient, and transparent digital currency option. It aims to facilitate daily transactions for individuals and businesses, enhance cross-border trade, and support emerging technologies such as AI-driven