The UAE’s dirham-backed stablecoin, DDSC, has received a No Objection Certificate from the Central Bank of the UAE (CBUAE), clearing the path for its listing on exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority (VARA). The consortium behind the digital asset, which includes IHC, First Abu Dhabi Bank (FAB), and Sirius International Holding, is now poised to expand its use from institutional settlement to retail applications.
Quick Facts
- Central Bank No Objection Certificate received
- Pegged 1:1 to the UAE Dirham (AED)
- Over AED 150M in institutional transactions
From Institutional Settlement to Retail Payments
Since its initial launch for institutional use, the DDSC stablecoin has already processed over AED 150 million in transactions. This new regulatory approval marks a significant step in its transition towards broader consumer and merchant adoption.
The approval, which remains subject to fulfilling specific CBUAE requirements, will allow businesses and individuals to use the token for daily transactions. This provides a much-needed local currency alternative in a digital asset market dominated by US dollar-pegged stablecoins. The stablecoin settles on ADI Chain, an institutional Layer-2 blockchain developed by the ADI Foundation.
A Regulated Local On-Ramp
The CBUAE’s green light is a key development for the UAE’s digital financial infrastructure, offering a regulated framework for transacting with a familiar unit of account on the blockchain.
“This approval represents another important milestone in the development of the UAE’s regulated digital financial ecosystem,” said Syed Basar Shueb, CEO of IHC.
“Following the successful demonstration of DDSC at institutional scale, this next phase expands its potential reach to businesses and individuals.”
Once the selected VARA-regulated platforms go live with the listing, the token is expected to enable faster settlement times for both merchants and retail users.
About DDSC Consortium
The DDSC consortium is a collaboration between prominent Abu Dhabi-based entities including International Holding Company (IHC), First Abu Dhabi Bank (FAB), and Sirius International Holding. The group was formed to develop and promote the UAE’s first regulated, dirham-pegged stablecoin (DDSC) to support the country’s growing digital economy.
Source: Fintech News UAE
