First, Abu Dhabi Bank (FAB), the UAE’s largest lender by assets, has unveiled plans to introduce a new stablecoin pegged to the UAE dirham. The token will be launched on the ADI blockchain platform and is pending final approval from the Central Bank of the UAE (CBUAE).
A joint statement released earlier this week confirmed a collaboration between FAB, International Holding Company (IHC), and ADQ. According to the institution, the stablecoin is designed to enhance digital payments for consumers, businesses, and government-linked entities.
Also Read: South Korea to Legalize Crypto ETFs and Institutional Trading in Major Shift
Stablecoin to Boost UAE’s Digital Payment Infrastructure
The token aims to ensure consistent value and stability by maintaining a fixed 1:1 peg with the UAE dirham. It will operate on the ADI blockchain, which is engineered for high-speed, secure digital transactions across various sectors.
Unlike volatile cryptocurrencies, the FAB-issued stablecoin will provide a trusted alternative for everyday use and commercial applications. In addition to supporting traditional payments, it will enable emerging technologies like machine-to-machine transactions and AI-driven payment systems.
CEO Hana Al Rostamani declared that the initiative follows the UAE’s digital economy development strategy for a linked economic network. She said the stablecoin will change the current blockchain payment deployments in retail stores and commercial establishments.
ADQ’s group CEO, Mohamed Alsuwaidi, viewed this initiative as essential to progress toward national digital economy targets. According to him, stablecoin has two advantages: it enables faster transactions and helps the UAE become a top regional fintech authority.
ADI blockchain operates as the underlying framework due to its safe and scalable design, which will secure stablecoin implementation. The platform will boost performance quality and integrate with digital solutions and automatic payment systems.
Supervision by the Central Bank of the UAE ensures that the stablecoin will meet strict regulatory standards. The project supports the UAE’s broader plans under the Digital Dirham initiative, which aims to modernize the financial system and boost digital adoption.
Conclusion
FAB’s upcoming launch of a dirham-backed stablecoin is expected to transform digital transactions across the UAE. Once approved, it will become a key element in the nation’s evolving digital financial landscape.
Also Read: Whale Alert: NYDIG Moves $270M in Bitcoin—What’s Going On?
