#AbuDhabiStablecoin A trio of major institutions in Abu Dhabi, including the sovereign fund ADQ, the largest bank in the United Arab Emirates First Abu Dhabi Bank (FAB), and the conglomerate International Holding Company (IHC), have partnered to launch a new stablecoin pegged to the UAE dirham. The stablecoin is awaiting regulatory approval and will be regulated by the Central Bank of the United Arab Emirates (CBUAE) and issued by FAB.

Important details:

Regulation and Issuance: The stablecoin will be regulated by the CBUAE and issued by FAB, pending regulatory approval.

Blockchain Technology: It will operate on the ADI blockchain, developed by the ADI Foundation, which aims to connect established financial systems with blockchain technology.

Purpose: The stablecoin aims to facilitate secure and efficient payments, both locally and globally, and support the digital infrastructure of the United Arab Emirates.

Timeline for Launch: The stablecoin is expected to be launched in the last quarter of 2025 for the retail sector.

Strategic Importance: This initiative is part of the broader strategy of the United Arab Emirates to position itself at the forefront of blockchain innovation and strengthen its digital infrastructure.

Context:

Global Trends: The UAE's move aligns with a global trend of countries and financial institutions exploring the potential of stablecoins and digital currencies.

Market Impact: The stablecoin is expected to provide stable value in the volatile cryptocurrency market and support various use cases, including machine-to-machine payments and artificial intelligence.

Regulatory Commitment: The UAE's commitment to regulating the stablecoin underscores its goal to provide a safe and regulated environment for the use and trading of cryptocurrencies.