Abu Dhabi recently launched a stablecoin backed by Dirhams (AED), aimed at accelerating the adoption of digital currencies in the UAE and optimizing the payment system. The sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC) collaborated, with FAB responsible for issuance and regulated by the Central Bank of the UAE. The stablecoin operates on the ADI blockchain, supporting daily transactions and AI, machine-to-machine payments, with the intent to enhance regional financial infrastructure and promote Abu Dhabi as a global blockchain innovation hub. This move challenges the dominance of USD stablecoins and showcases the UAE's ambitions in the digital economy.