UAE to launch dirham-backed stablecoin

In a landmark fintech move

In a historic move set to transform the financial landscape in the UAE, IHC, ADQ, and First Abu Dhabi Bank (FAB) are set to launch a stablecoin fully backed by the UAE dirham. Pending regulatory approval, the new digital currency will be issued by FAB and fully overseen by the Central Bank of the United Arab Emirates.

The move marks a significant milestone in the UAE’s vision to evolve into a leading financial technology hub. The stablecoin is designed to enhance the ease of payments and commerce locally and internationally. If successful, the initiative will provide a secure, efficient, and scalable solution for digital transactions while supporting emerging technologies such as artificial intelligence and machine-to-machine communication.

The stablecoin will operate on the ADI blockchain, a platform developed by the UAE-based ADI Foundation. This blockchain technology is purpose-built to create a compliant and efficient distribution network for digital payments. It bridges traditional financial systems with next-generation decentralised technologies, paving the way for real-world impact, particularly in emerging markets.

The ADI Foundation maintains strategic partnerships with governments in more than 20 countries, enhancing its global reach and credibility.

According to Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, the stablecoin is a cornerstone of the UAE’s digital infrastructure ambitions.

“The launch of stablecoin marks a pivotal step in our commitment to strengthening the UAE’s digital infrastructure ecosystem. As we move towards an increasingly digital and connected economy, stablecoin will provide a secure, efficient and scalable solution while creating new opportunities for growth and value creation,” Alsuwaidi stated.

The stablecoin’s underlying mission is to establish a secure and verifiable financial instrument that allows identity, governance and value to flow freely across digital platforms. With growing demand for blockchain-enabled services, the stablecoin aims to become an everyday utility for citizens, businesses and institutions. From daily consumer transactions to complex institutional settlements, the coin is designed to offer seamless functionality across diverse use cases.

Syed Basar Shueb, CEO of IHC, highlighted the breakthrough nature of the initiative. “This new stablecoin represents a breakthrough in the development of digital currencies, and we are proud to have played a key role in its creation. By bringing IHC’s expertise in blockchain and fintech, we look forward to working with our partners to explore its vast potential and drive innovation in the UAE,” said Shueb.

Hana Al Rostamani, Group CEO of FAB, underscored the strategic importance of this digital initiative for both the bank and the broader financial ecosystem in the Emirates. “FAB is proud to play our part as a founding member of this ground-breaking development, which will put the UAE at the forefront of global innovation and enable even more growth in our thriving fintech sector. The new stablecoin will significantly impact industries and could revolutionise the use of trusted blockchain payments for UAE consumers and businesses,” she said.

Guillaume de La Tour, the CEO of the ADI Foundation, reiterated the UAE’s importance in developing homegrown digital infrastructure.

“This stablecoin marks a pivotal milestone in the UAE’s journey toward a more inclusive and digitally empowered economy. By leveraging the ADI blockchain, we enable secure, transparent, and efficient transactions at scale, built on technology developed in the UAE. The ADI Foundation is proud to support this visionary initiative that aligns with our mission to advance sustainable digital transformation worldwide,” de La Tour explained.

The move will significantly influence multiple sectors, including finance, retail, logistics and international trade. As the world increasingly turns to decentralised technologies for transparent and efficient operations, the UAE’s stablecoin initiative may serve as a blueprint for other countries exploring digital currencies regulated by central banks.

Moreover, the stablecoin aligns with the UAE’s broader ambitions to drive global competitiveness by strengthening its digital economy and regulatory frameworks.

Image: The stablecoin will operate on the ADI blockchain, a platform developed by the UAE-based ADI Foundation. Credit: Kevin Villaruz