Quick Summary:
- ADQ, FAB, and IHC propose a new UAE dirham-pegged stablecoin.
- The stablecoin will run on the ADI blockchain, enhancing digital payments.
- Awaiting approval from the Central Bank of the UAE.
- Aims to support digital infrastructure, AI-driven transactions, and global integration.
- FAB to issue the stablecoin; ADI Foundation to provide the technical framework.
Abu Dhabi’s Stablecoin Vision Takes Shape
Three of Abu Dhabi’s powerhouse institutions—sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC)—have jointly announced plans to launch a UAE dirham-pegged stablecoin. Designed to strengthen the country’s digital economy, the initiative is currently pending approval from the Central Bank of the UAE.
Once approved, this stablecoin will serve as a fully regulated digital currency, operating on the UAE-developed ADI blockchain. Its launch marks a strategic move in modernizing financial services while aligning with global blockchain standards.
A Regulated Digital Asset for Emerging Tech
This new stablecoin is intended to support a wide range of digital applications, including machine-to-machine payments and artificial intelligence systems. FAB, the UAE’s largest banking institution formed through a 2017 merger, is set to issue the coin, ensuring compliance with national regulatory frameworks.
According to a joint press release, the stablecoin will be fully backed by the UAE dirham and regulated by the country’s central bank, offering both security and transparency in digital transactions.
Backing from Major Institutions
Each participating organization brings a unique strength to the project:
- ADQ, established in 2018, oversees investments in national infrastructure and logistics. The group’s CEO stated the initiative represents “a significant development in the country’s drive to grow its digital ecosystem.”
- IHC, with a market capitalization exceeding $243 billion, is contributing its blockchain expertise to strengthen the technological backbone of the project.
- FAB brings robust banking infrastructure, enabling seamless integration into existing financial systems and ensuring the stablecoin can function in both public and private sectors.
ADI Blockchain: The Technical Backbone
The ADI Foundation, a non-profit headquartered in the UAE, is leading the blockchain framework for the stablecoin. With partnerships across 20+ countries, the foundation is committed to building secure, scalable, and accessible blockchain platforms.
They emphasized that the ADI blockchain was “created in the UAE, demonstrating scalable and transparent digital operations.” The foundation bridges the gap between centralized financial systems and decentralized platforms, supporting both national and international use cases.
Next Steps and Future Outlook
Pending approval by the Central Bank of the UAE, the project will transition into its operational phase. The stablecoin is expected to accelerate secure, fast, and efficient payments across finance, commerce, and enterprise domains.
This initiative not only positions the UAE as a leader in digital innovation but also highlights its strategic commitment to building a full-fledged digital economy.