UAE Greenlights Institutional Stablecoin for Trade and Settlement

The United Arab Emirates has granted regulatory approval for the launch of a UAE dirham-backed institutional stablecoin, a move signaling significant progress in the nation’s regulated digital finance strategy. Led by First Abu Dhabi Bank (FAB), in collaboration with International Holding Company (IHC) and Sirius International Holding, the stablecoin will operate on ADI Chain, a blockchain infrastructure tailored for institutional financial applications.

This digital currency, pegged 1:1 to the UAE dirham, is specifically designed for institutional and government use, excluding retail investors. Its primary applications include streamlining high-value domestic settlements, optimizing treasury operations, facilitating trade finance, and enhancing supply-chain transactions, providing regulated entities with a secure and compliant blockchain-based value transfer mechanism.

Officials emphasize that the project aims to improve the efficiency of large-scale payments and cross-border trade while upholding stringent regulatory standards. This initiative positions the UAE alongside other global financial hubs like Singapore, Hong Kong, and the United States, which are actively developing regulated digital asset frameworks to connect traditional banking with blockchain technology, reinforcing Abu Dhabi’s ambition to become a regional fintech hub.

(Source：The Middle East Observer)