A New Anchor Point for Middle Eastern Crypto Finance

Abu Dhabi is leveraging stablecoins to solidify its position as a global crypto finance hub. As the capital of the UAE, it attracts various institutions to develop compliant stablecoin projects due to its relaxed regulations and mature financial infrastructure.

Policy First

Abu Dhabi Global Market (ADGM) launched the world's first 'Controlled Stablecoin Framework,' requiring issuers to back their reserves 100% with fiat currency and undergo regular audits, balancing innovation with risk management.

Practical Implementation

In 2023, local financial institutions collaborated with crypto companies to introduce the first compliant stablecoin pegged to the US dollar in the Middle East (such as AEDM), supporting cross-border payments and trade settlements, enhancing regional financial efficiency.

Future Role

The Central Bank of the UAE plans to pilot a Central Bank Digital Currency (CBDC), and private stablecoins may serve as a complementary element to its ecosystem. Abu Dhabi may leverage stablecoins to bridge traditional finance and Web3, reshaping the capital flow patterns in the Middle East.