29-4-2025 – Abu Dhabi has unveiled a pioneering initiative to launch a stablecoin pegged to the UAE Dirham, a move poised to reshape the landscape of digital finance. This ambitious venture, forged through a landmark collaboration between three UAE titans—International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB)—signals the emirate’s unwavering commitment to innovation and economic diversification. By challenging the hegemony of US dollar-backed stablecoins, Abu Dhabi is not merely joining a global race but positioning itself at its forefront.
Crafted on the UAE’s homegrown ADI blockchain, this Dirham-backed stablecoin promises to deliver secure, seamless, and instantaneous transactions for individuals, enterprises, and institutions alike, both within the UAE and across borders. Beyond facilitating everyday purchases, the currency is engineered to power sophisticated digital ecosystems, from machine-to-machine payments to AI-driven financial operations. Its compliance with the UAE Central Bank’s rigorous regulations ensures both legal integrity and user trust, with FAB set to spearhead its issuance pending regulatory approval.
The project’s vision extends far beyond transactional convenience. It is a cornerstone of the UAE’s broader aspiration to lead the charge in emerging fields such as smart finance and the Internet of Things (IoT). By embedding cutting-edge blockchain technology into its financial infrastructure, the UAE is laying the groundwork for a future where digital currencies underpin a hyper-connected, intelligent economy. This forward-thinking approach builds on the nation’s recent milestones, including the debut of AE Coin, its first regulated stablecoin, and a $2 billion investment by Abu Dhabi-based MGX in Binance, underscoring the emirate’s deepening influence in the crypto and blockchain arenas.
Syed Basar Shueb, IHC’s chief executive, hailed the stablecoin as a transformative leap for digital finance, emphasising the pride in leveraging IHC’s blockchain expertise to drive this initiative. Echoing this sentiment, ADQ’s CEO, Mohamed Hassan Alsuwaidi, underscored the project’s potential to fortify the UAE’s digital infrastructure, heralding a new era of financial resilience and innovation.
Globally, the UAE’s move aligns with a growing trend as nations explore alternatives to US dollar-dominated stablecoins. Russia, for instance, is contemplating a rouble-backed stablecoin amid US sanctions, while others investigate central bank digital currencies (CBDCs). Yet, a Citigroup analysis reveals that US dollar-backed stablecoins, led by Tether, continue to command the $230 billion market, with a 54% surge in value over the past year, holding a formidable 90% share.
