The institutional giants of Abu Dhabi team up to create a stablecoin in dirhams
A trio of major institutions from Abu Dhabi have joined forces to launch a new stablecoin linked to the dirham.
A trio of major institutions from Abu Dhabi, including the emirate's sovereign fund, have come together to launch a new stablecoin linked to the dirham.
Abu Dhabi's sovereign fund 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 announced on April 28.
The trio stated that the stablecoin would be regulated by the UAE central bank and backed by the country's currency, the dirham. It will also accommodate use cases such as machine-to-machine and artificial intelligence.
The goal is to position the UAE at the "forefront of global blockchain innovation," while strengthening digital infrastructure, according to ADQ.
If it receives the green light from regulators, the new stablecoin will operate on the ADI blockchain, created by the ADI Foundation, a nonprofit organization dedicated to helping established financial systems and governments advance and adopt blockchain technology.
Established in 2018, ADQ is a sovereign fund focused on critical infrastructure and global supply chains. Meanwhile, IHC is one of the largest investment firms and conglomerates in the UAE with a market value of over $243 billion, having ties to the ruling family of Abu Dhabi, the capital of the country.
FAB is the largest bank in the UAE, formed in 2017 through a merger between First Gulf Bank and National Bank of Abu Dhabi.