Abu Dhabi Launches New Dirham-backed Stablecoin Project

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Abu Dhabi’s International Holding Company, ADQ, and First Abu Dhabi Bank have announced plans to introduce a dirham-backed stablecoin, fully regulated by the UAE Central Bank, to enhance payment solutions and digital infrastructure.

According to The National, the stablecoin will operate on the ADI blockchain and be issued by FAB, the UAE’s largest bank, pending regulatory approval, as stated in a joint release on Monday.

This digital currency will cater to consumers, businesses, and institutions, supporting applications like machine-to-machine transactions and AI-driven processes.

“This new stablecoin marks a transformative leap forward, revolutionizing how both consumers and businesses interact with trusted blockchain payments in the UAE,” said Hana Al Rostamani, FAB’s group chief executive.

Stablecoins, typically tied to fiat currencies, provide a more stable digital asset compared to cryptocurrencies like Bitcoin. Their value is linked to currencies, government treasuries, or commodities like gold, offering a less volatile option for digital transactions.