#AbuDhabiStablecoin

Abu Dhabi has emerged as a hub for **stablecoin innovation**, with the **Financial Services Regulatory Authority (FSRA)** updating its crypto asset framework to regulate fiat-backed stablecoins as digital money under strict licensing rules . The UAE Central Bank (CBUAE) approved a licensing system for **dirham-backed stablecoins**, restricting merchants to AED-pegged tokens only . Projects like Paxos’ yield-bearing **Lift Dollar (USDL)**—issued under Abu Dhabi’s FSRA—highlight the emirate’s appeal for crypto firms . These efforts align with the UAE’s **Financial Infrastructure Transformation (FIT) program**, aiming to boost digital payments and economic diversification .