In a bold move to cement the UAE’s position in the global blockchain arena, three of Abu Dhabi’s most influential institutions are collaborating to launch a dirham-pegged stablecoin pending regulatory approval.
The coalition includes ADQ, the Emirate’s sovereign wealth fund; First Abu Dhabi Bank (FAB), the country’s largest bank; and the International Holding Company (IHC), a $243 billion investment conglomerate with deep ties to the ruling family.
Together, the trio unveiled the initiative on April 28, with plans for the new stablecoin to be fully backed by the UAE dirham and regulated by the country’s central bank.
The move is intended to enhance the UAE’s digital infrastructure and place the nation at the cutting edge of blockchain technology. The stablecoin is expected to support a range of advanced use cases, including machine-to-machine transactions and artificial intelligence integration.
If regulators approve, the stablecoin will operate on the ADI blockchain, which was developed by the ADI Foundation, a nonprofit entity focused on accelerating blockchain adoption among governments and traditional financial institutions.
The initiative reflects the UAE’s ambition to rival global stablecoin dominance, which is currently led by US dollar-pegged tokens such as Tether (USDT) and USDC, accounting for 90% of a $230 billion market. While several countries, including Russia, have floated their stablecoin concepts, analysts from Citigroup believe the market will remain largely USD-centric despite growing efforts by non-US jurisdictions to introduce national digital currencies.
FAB, born from the 2017 merger of First Gulf Bank and the National Bank of Abu Dhabi, brings significant financial weight to the project. ADQ, founded in 2018, manages investments critical to infrastructure and global supply chains. IHC continues to expand its vast investment portfolio, reinforcing Abu Dhabi’s influence in regional and global markets. With regulatory approval pending, the UAE’s homegrown stablecoin could soon emerge as a cornerstone of its digital finance ambitions.
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