Abu Dhabi is stepping up its ambitions in the digital asset space, with three of its largest institutions joining forces to launch a new dirham-backed stablecoin.
Sovereign wealth fund ADQ, conglomerate International Holding Company (IHC) and First Abu Dhabi Bank (FAB) announced on Monday that they are developing a digital token that will be subject to oversight by the UAE’s central bank.
The new stablecoin will operate on the ADI blockchain, a technology developed domestically by the ADI Foundation.
In particular, it aims to offer citizens, businesses and institutions a trusted means of payment. Moreover, it will support transactions across a range of everyday and emerging digital scenarios. “This stablecoin will be used as a reliable digital currency across a wide range of everyday scenarios – by citizens and consumers, businesses and institutions,” the companies said in a joint statement.
Already, the government has made headway by enabling crypto payments, introducing digital asset regulations early, and promoting homegrown blockchain ventures. In December, it took a major step by rolling out its first official stablecoin, AE Coin. Then, last month, local investment group MGX committed $2b to Binance in one of the largest-ever crypto deals.
Abu Dhabi’s latest move reflects the UAE’s broader strategy to cement itself as a global hub for digital assets.
He further added that it would offer a secure and scalable solution for the increasingly connected economy. FAB, the UAE’s largest lender, is expected to issue the stablecoin once it receives regulatory clearance.
H.E. Mohamed Hassan Alsuwaidi, CEO of ADQ, said the initiative “marks a pivotal step in our commitment to strengthening the UAE’s digital infrastructure ecosystem.”
Similarly, Syed Basar Shueb, CEO of IHC, said the venture would open vast opportunities and further drive fintech innovation in the region.
Guillaume de La Tour, CEO of the ADI Foundation, noted that the blockchain network would enable “secure, transparent, and efficient transactions at scale,” a crucial advantage for economies aiming to digitize sustainably.
Meanwhile, Group CEO Hana Al Rostamani described the project as a “ground-breaking development” that could revolutionize trusted blockchain payments across industries.