First Abu Dhabi Bank (FAB), UAE sovereign wealth fund ADQ and holding company IHC are preparing to launch a dirham-backed stablecoin, according to an announcement by the three entities.
The digital currency is intended for use by consumers, businesses and institutions, subject to regulatory approvals. FAB will issue the stablecoin, which the companies said will be fully regulated by the Central Bank of the UAE.
The initiative is positioned as part of efforts to support the UAE’s digital economy and modernise financial transactions. The companies said it could be used across finance, commerce, trade and other industries.
The stablecoin will operate on the ADI blockchain, a technology developed in the UAE by the ADI Foundation.
ADQ Managing Director and Group CEO Mohamed Hassan Alsuwaidi said the launch would support the UAE’s digital infrastructure and provide a secure, efficient and scalable solution for a more connected economy.
Source: Zawya
