Abu Dhabi's ADQ, FAB, and IHC to Launch UAE Dirham-Backed Stablecoin Under CBUAE Oversight

ABU DHABI, UAE — April 30, 2025 In a major development aimed at accelerating the UAE’s digital financial infrastructure, three of Abu Dhabi’s most prominent institutions—ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC)—have jointly announced plans to launch a stablecoin pegged to the UAE Dirham (AED). The initiative will be regulated by the Central Bank of the United Arab Emirates (CBUAE) and is part of the country’s strategic roadmap to integrate blockchain technology into its core payment ecosystems.

Dirham-Backed Stablecoin to Support UAE’s Digital Economy Vision

The proposed stablecoin will act as a digital payment tool accessible to consumers, businesses, financial institutions, and AI systems, offering a secure and scalable alternative for daily transactions. The digital currency will be backed 1:1 by the UAE Dirham and will function within a fully regulated framework, making it one of the first regionally issued and regulated stablecoins.

Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, highlighted the stablecoin’s broader significance:

“As we move forward towards an increasingly digital and connected economy, [the] stablecoin will provide a solution that is secure, efficient, and scalable, while creating new opportunities for growth and value creation.”

Powered by ADI Blockchain for Security and Transparency

The ADI blockchain, developed by the ADI Foundation, a UAE-based non-profit, will serve as the underlying infrastructure for the stablecoin. The blockchain has been designed specifically to meet sovereign-grade standards of transparency and cybersecurity.

According to the ADI Foundation, local development of the blockchain ensures full compliance with UAE’s national data policies and cybersecurity regulations, positioning it as a trusted platform for tokenized financial solutions.

Broader Economic Implications and Web3 Expansion

The introduction of a Dirham-backed stablecoin is expected to transform industries such as finance, commerce, and cross-border trade by lowering transaction costs, improving settlement speed, and enabling machine-to-machine (M2M) payments, especially in AI-driven environments.

The move further reinforces Abu Dhabi’s ambition to become a global Web3 hub, complementing Dubai’s regulatory leadership via VARA. In March, the Abu Dhabi Global Market (ADGM) signed a Memorandum of Understanding with Chainlink Labs to explore blockchain-based data infrastructure and smart contracts.

Additionally, MGX, a sovereign wealth fund under Abu Dhabi’s umbrella, recently made headlines with a $2 billion investment in Binance, solidifying its position in the global digital assets landscape.

While the launch date for the stablecoin remains undisclosed, the regulatory and technological groundwork indicates that the UAE is actively preparing to lead in blockchain-enabled finance.