Abu Dhabi recently launched two stablecoins backed by the UAE dirham, reflecting the country's commitment to enhancing innovation in the digital financial sector.
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AE Coin: The first officially licensed stablecoin
In October 2024, AED Stablecoin LLC received preliminary approval from the Central Bank of the UAE to issue AE Coin, which is the first stablecoin fully backed by the dirham and officially licensed. [1] This currency follows the 'Regulation of Payment Token Services' framework, which requires that cash reserves be held in local banks or invested in short-term government financial instruments. [2]
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DRAM: A special initiative from DTR
In October 2023, Distributed Technologies Research (DTR) launched DRAM, a stablecoin backed by the dirham, which has been listed on decentralized trading platforms like Uniswap and PancakeSwap. [3] DRAM aims to provide a stable digital alternative for investors in high-inflation markets, with a focus on transparency and compliance with international standards.
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Tether: Plans to launch a dirham-backed stablecoin
Tether, a leader in the stablecoin space, announced its intention to launch a stablecoin backed by the UAE dirham in collaboration with local partners such as Phoenix Group and Green Acorn Investments. [4] This move aims to meet the growing demand for stable digital currencies in the region and enhance the use of the dirham in digital transactions.
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