#AbuDhabiStablecoin

The institutional giants of Abu Dhabi come together to create the stablecoin linked to the dirham

If approved by the regulators of the United Arab Emirates, the stablecoin linked to the dirham and regulated by the central bank will operate on the ADI blockchain.

A trio of major institutions in Abu Dhabi, including the sovereign wealth fund of the Emirate, have joined forces to launch a new stablecoin linked to the dirham.

The sovereign wealth fund of Abu Dhabi, ADQ, the largest bank in the United Arab Emirates, First Abu Dhabi Bank (FAB), and the massive conglomerate International Holding Company, have partnered to launch the stablecoin, pending regulatory approval, the three companies said on April 28.

The trio stated that the stablecoin would be regulated by the central bank of the UAE and backed by the country’s currency, the dirham. Additionally, it would support use cases such as machine-to-machine communication and artificial intelligence.

The goal is to position the United Arab Emirates at the "forefront of global blockchain innovation," while simultaneously strengthening digital infrastructure, according to ADQ.

If approved by the regulators, the new stablecoin will operate on the ADI blockchain, created by the ADI Foundation, a non-profit organization dedicated to helping established financial systems and governments advance and adopt blockchain technology.

Founded in 2018, ADQ is a sovereign investment fund focused on critical infrastructure and global supply chains. For its part, IHC is one of the largest investment firms and conglomerates in the UAE, with a market value exceeding $243 billion and ties to the ruling family of Abu Dhabi, the capital of the country.

FAB is the largest bank in the United Arab Emirates, formed in 2017 through a merger between First Gulf Bank and National Bank of Abu Dhabi.