#AbuDhabiStablecoin Abu Dhabi Launches Dirham-Backed Stablecoin in Partnership with ADQ, IHC, and FAB
In a strategic move to position itself as the global hub for national currency-backed cryptocurrencies, Abu Dhabi announced on Monday the creation of a regulated stablecoin backed by the Emirati dirham (AED). The initiative is supported by three local financial giants: the Abu Dhabi Sovereign Fund (ADQ), the International Holding Company (IHC) conglomerate, and First Abu Dhabi Bank (FAB), under the direct supervision of the UAE Central Bank.
The new stablecoin, whose official name will be revealed in the coming weeks, will be fully backed by dirham reserves and designed to facilitate secure, fast, and volatility-free transactions in the digital ecosystem. With this measure, the United Arab Emirates (UAE) aims to attract blockchain investments, promote financial innovation, and consolidate its leadership as a center for crypto-assets in the Middle East.
Regulation and Trust
Unlike other global stablecoins, this project will operate under a clear regulatory framework, ensuring transparency and compliance with anti-money laundering and counter-terrorism financing regulations. The UAE Central Bank will oversee each phase, from issuance to circulation, ensuring a 1:1 parity with the dirham.
"This is a crucial step to integrate the digital economy with the traditional financial system, offering security for both institutions and end-users," stated a senior executive from FAB during the launch.
Key Partners
- ADQ: The sovereign wealth fund will contribute its expertise in strategic investments and economic diversification.
- IHC: The conglomerate, one of the most valuable in the region, will drive the commercial adoption of the stablecoin.
- FAB: The largest bank in the UAE will ensure the solvency and liquidity of the digital asset.