Abu Dhabi-based International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB) have jointly announced the launch of a UAE Dirham-backed stablecoin, subject to regulatory approval. The digital currency will be issued by FAB and regulated by the Central Bank of the UAE (CBUAE).
The stablecoin will be deployed on the ADI blockchain, a platform developed by the ADI Foundation, which supports blockchain-based payments across both traditional financial and emerging digital systems. The ADI Foundation has active partnerships in over 20 countries and aims to connect established banking infrastructure with blockchain frameworks.
The digital currency is designed to facilitate transactions across consumers, businesses, and institutions. It will also support emerging use cases such as AI-driven transactions and machine-to-machine payments. The coin is a key tool to strengthen domestic payment systems and expand the UAE’s footprint in digital finance.
FAB, the UAE’s largest bank by assets, will lead issuance efforts, while IHC and ADQ will support the initiative as founding partners. The launch is intended to provide a regulated alternative to existing stablecoins and increase the efficiency and reliability of blockchain-based payments in the UAE and beyond.
In recent years, the Central Bank of the UAE has increased its focus on digital currency frameworks. In March 2023, the “Digital Dirham” initiative was launched under the Financial Infrastructure Transformation Programme, aiming to develop a CBDC strategy for retail and wholesale use.
The new stablecoin adds to a growing list of public-private blockchain collaborations in the Gulf, as financial institutions seek to develop compliant digital currency systems with international utility. The move comes amid global scrutiny over unregulated stablecoins and growing interest in tokenised payments infrastructure.
FAB’s stablecoin is expected to serve cross-border trade, e-commerce, and B2B transactions, providing a blockchain-based solution aligned with local currency regulation. Further announcements on rollout timelines and infrastructure specifications are expected following regulatory review.
