Three Abu Dhabi Firms Plans to Launch UAE’s First Dirham-Backed Stablecoin

Highlights:

• Abu Dhabi’s financial giants to launch Dirham-backed stablecoin for stronger digital finance. 
• The stablecoin is designed to streamline secure payments both within the UAE and globally.
• As the UAE makes strides, nations like Russia consider options beyond US dollar-backed stablecoins

Abu Dhabi continues to push forward in its pursuit of global fintech leadership. Three key UAE organizations— International Holding Company (IHC), Abu Dhabi Developmental Holding Company (ADQ), and First Abu Dhabi Bank (FAB)—have partnered to create a stablecoin backed by the UAE Dirham. This move strengthens Abu Dhabi’s position as a rising competitor to US dollar-backed stablecoins. 

Today, IHC, alongside @Adq_Official and First Abu Dhabi Bank @FABConnects, announced plans to launch a new Dirham-backed stablecoin, which will be fully regulated by the Central Bank of the UAE and issued by FAB.

The new #stablecoin will transform payments and business… pic.twitter.com/gWnVjX0LoC

— IHC (@ihc__official) April 28, 2025

If approved by regulators, the new stablecoin will run on the ADI blockchain, created by the ADI Foundation, a nonprofit that helps financial systems and governments use blockchain technology. It is designed to give people, businesses, and organizations a safe and reliable way to make payments. It will also work for both everyday uses and new digital situations.

Hana Al Rostamani, group chief executive of FAB said:

“This new stablecoin represents a transformative step forward and will revolutionise the way both consumers and businesses engage with trusted blockchain payments in the UAE.”

UAE Stablecoin Set to Strengthen Digital Systems and Boost Fintech Leadership

The partners believe the new stablecoin will make the UAE’s digital systems stronger and help the country become a leader in global financial technology. H.E. Mohamed Hassan Alsuwaidi, CEO of ADQ, highlighted that the project is a key advancement in enhancing the UAE’s digital infrastructure. He also said it will provide a safe and flexible solution for today’s growing digital economy.

First Abu Dhabi Bank, the UAE’s biggest lender, will issue the stablecoin after getting approval from regulators. Group CEO Hana Al Rostamani called the project a major breakthrough that could change how trusted blockchain payments work in different industries. Syed Basar Shueb, CEO of IHC, said this project will create big opportunities and help boost financial technology growth in the region.

Moreover, Guillaume de La Tour, CEO of the ADI Foundation, said the blockchain network will allow for “safe, clear, and efficient transactions on a large scale,” which is key for economies looking to digitize sustainably. With more than $225 billion in assets, ADQ has been leading many investments to grow Abu Dhabi’s digital economy.

UAE Takes Key Steps in Digital Asset Leadership

Abu Dhabi’s recent steps highlight the UAE’s ambition to lead in the digital asset space. The country has taken early action by approving crypto payments, creating clear regulations, and backing local blockchain innovations. In December, the UAE launched its first official stablecoin called AE Coin. Then, last month, a local investment group named MGX invested $2 billion in Binance, marking one of the biggest crypto deals ever. 

Several nations are investigating stablecoins linked to their own currencies, with Russia considering one tied to its ruble in response to US sanctions. Numerous nations are investigating the potential of stablecoins and central bank digital currencies (CBDCs). According to a Citigroup report, US dollar-backed stablecoins dominate the market, with Tether controlling 90% of the $230 billion market, a 54% increase from the previous year.