- First Abu Dhabi Bank to issue UAE’s new Dirham-backed stablecoin, pending approval from the Central Bank.
- The digital token will operate on ADI blockchain and support machine-to-machine and AI-driven payment flows.
- The stablecoin is part of the UAE’s broader push to accelerate adoption of regulated digital assets and infrastructure.
Three major financial institutions in the United Arab Emirates — International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB) — have announced plans to launch a new stablecoin backed by the UAE dirham. The token will be issued by FAB, the country’s largest bank by assets, and regulated by the Central Bank of the UAE (CBUAE), pending final approval.
New Stablecoin to Operate on ADI Blockchain
According to a joint statement released Monday, the stablecoin will be deployed on the ADI blockchain, a platform designed to support secure, high-speed digital transactions. Once approved, FAB will issue the stablecoin, which is intended for use by consumers, businesses, and institutions.
Company officials emphasized that the initiative aligns with the UAE’s strategy to build a digitally connected economy. The token is expected to play a key role in future payment applications — including machine-to-machine transactions and AI-driven payment flows.
FAB CEO Hana Al Rostamani noted the project could reshape how blockchain-based payments are used in both commercial and retail sectors across the UAE. She said the stablecoin could unlock opportunities in finance, trade, and digital services.
Related: Stablecoins Processed $14 Trillion in 2024, Exceeding Visa: Bitwise Data
Digital Dirham Strategy Gains Momentum
The launch builds on recent moves by the CBUAE to accelerate digital currency adoption. In March 2023, the central bank rolled out the first phase of its Digital Dirham initiative, and in 2024 introduced a formal regulatory framework for stablecoins. These moves set the stage for financial institutions like FAB to issue compliant digital tokens.
Mohamed Alsuwaidi, Group CEO of ADQ, called the stablecoin a “key step” toward advancing the UAE’s digital economy goals. He said the project enhances transaction efficiency and strengthens the country’s standing as a regional fintech leader.
Stablecoin Will Be Pegged to UAE Dirham
Unlike cryptocurrencies such as Bitcoin, stablecoins are typically tied to traditional assets — like fiat currencies, government bonds, or commodities — to maintain price stability.
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The planned UAE stablecoin will be pegged 1:1 to the UAE dirham, helping reduce volatility and build trust among institutional and retail users alike.
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