#AbuDhabiStablecoin

Three Abu Dhabi Giants Plan Stablecoin Backed by UAE’s Currency

Three major Abu Dhabi entities, including a sovereign wealth fund, plan to launch a stablecoin fully regulated by the central bank of the United Arab Emirates and backed by the dirham, a move that could speed the Persian Gulf nation’s efforts to adopt digital currencies and facilitate payments.

The sovereign wealth fund, ADQ along with the UAE’s largest lender, First Abu Dhabi Bank PJSC, and International Holding Co., a sprawling conglomerate, will be the founding partners of the new stablecoin, whose creation will be subject to regulatory approval.

“This stablecoin will be used as a reliable digital currency across a wide range of everyday scenarios,” according to a statement released Monday. “It will also support emerging digital use cases such as machine-to-machine and AI.”

The stablecoin will be issued by the FAB, whose chief executive, Hana Al Rostamani, said the digital currency “will make a significant impact across industries and could revolutionize the use of trusted blockchain payments for UAE consumers and businesses.”

In December, the UAE’s central bank approved AE Coin, also backed by the dirham, the Emirates’ currency. Growing popular worldwide, stablecoins are typically pegged to traditional currencies, which makes them less vulnerable to price volatility like other digital tokens, such as Bitcoin.