#AbuDhabiStablecoin Abu Dhabi is paving a significant path in the stablecoin space. Recently, three major institutions in Abu Dhabi - Abu Dhabi Developmental Holding Company (ADQ), International Holding Company (IHC), and First Abu Dhabi Bank (FAB) - announced plans to launch a new stablecoin backed by the local currency, the dirham (AED).

This initiative, which has the support of major institutions and a strong blockchain infrastructure, aims to revolutionize financial transactions, trade, and the digital industry in the Gulf region and globally. The new stablecoin will be fully regulated by the Central Bank of the United Arab Emirates and will operate on the ADI blockchain.

Furthermore, the Abu Dhabi Global Market (ADGM), the international financial center of the capital of the United Arab Emirates, already has a regulatory framework for "fiat-referenced tokens" (FRTs), which encompass stablecoins. This framework aims to ensure stability, transparency, and investor protection while fostering innovation in digital finance. The Financial Services Regulatory Authority (FSRA) of ADGM allows the issuance of FRTs backed by the US dollar, provided they meet strict reserve and compliance standards.

Recently, Circle, the issuer of the USDC stablecoin, received preliminary approval from the FSRA of ADGM to operate as a financial services provider, an important step toward obtaining a full license and expanding its operations in the Middle East and Africa.