UAE Unveils Dirham-Backed Stablecoin in Major Fintech Push Led by ADQ, FAB, and IHC

Abu Dhabi has taken a bold step toward cementing its role as a global fintech leader with the launch of a new stablecoin pegged to the United Arab Emirates dirham. This initiative is the result of a strategic partnership between three of the UAE’s most influential entities: sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC). The digital currency is set to be issued by FAB, pending final regulatory approval from the Central Bank of the UAE (CBUAE), and will be built on the ADI Blockchain—a blockchain infrastructure designed specifically to support secure and scalable digital finance.

The stablecoin, designed to maintain a 1:1 peg with the UAE dirham, is expected to serve as a trustworthy and efficient digital payment solution across various sectors. While the immediate goal is to facilitate seamless transactions between individuals, businesses, and financial institutions, the long-term vision expands much further. The coin is expected to power advanced technologies like AI-driven automation and machine-to-machine payments, highlighting its potential role in the UAE’s broader digital economy transformation. It could also be used in smart contracts, cross-border remittances, and decentralized finance (DeFi) applications.

This move is part of the UAE’s larger ambition to become a hub for blockchain innovation and digital assets. The country has already established a reputation for being forward-thinking when it comes to crypto regulation, offering clear frameworks that have attracted both startups and multinational fintech companies. By creating a locally regulated, fiat-backed digital currency, the UAE is aiming to reduce dependency on foreign stablecoins and establish a digital financial system that reflects local economic dynamics and central bank oversight.

Leaders from ADQ, FAB, and IHC have expressed confidence that this initiative will improve the speed, transparency, and security of financial transactions, not just within the UAE but across borders. Furthermore, it signals growing cooperation between the public and private sectors in creating technology-driven financial solutions. As global interest in stablecoins continues to rise—particularly in regions looking for efficient and compliant alternatives to volatile cryptocurrencies—Abu Dhabi’s stablecoin could serve as a model for other nations aiming to modernize their economies through digital innovation.

With this announcement, the UAE reaffirms its position as a pioneer in embracing digital finance and sets the stage for the future of regulated, blockchain-based economies. The success of this dirham-backed stablecoin could catalyze further developments in digital payments and enhance the UAE’s influence in shaping global crypto policy.