UAE Introduces New Stablecoin Backed by National Currency

Abu Dhabi has announced the launch of a stablecoin backed by the United Arab Emirates Dirham, as part of a partnership between International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB). The new digital currency is built on the local ADI blockchain and is set to be issued by FAB, pending regulatory approval.

The stablecoin is intended for both domestic payments and international transactions, and is designed to support complex digital operations, including machine-to-machine payments and AI-based financial processes. The project complies with the regulatory standards set by the UAE Central Bank, with a focus on security and transparency.

Through this initiative, Abu Dhabi aims to diversify the local economy and strengthen its digital financial infrastructure. The launch comes amid a global trend where stablecoins are increasingly integrated into the financial ecosystem, most of them being pegged to the US dollar. The Dirham-based coin could offer a regional and sustainable alternative for digital payments.