In a significant move for the UAE’s digital finance landscape, the Central Bank of the UAE (CBUAE) has officially approved the launch of DDSC, a dirham-backed stablecoin. The project is a collaboration between International Holding Company (IHC), its technology subsidiary Sirius International Holding, and First Abu Dhabi Bank (FAB).
This regulatory green light marks a pivotal moment, transitioning the stablecoin from development into its operational phase. Sirius International Holding will now lead the deployment, integration, and institutional adoption of DDSC, which was first announced in April of last year.
A Milestone for Regulated Digital Finance
The CBUAE’s approval positions DDSC as a regulated financial instrument within the UAE’s burgeoning digital asset framework. The stablecoin is designed to bridge the gap between traditional finance and blockchain technology, offering a compliant and secure digital currency for a new era of transactions.
Syed Basar Shueb, Chief Executive of IHC, described the approval as “a defining milestone in the UAE’s digital finance journey,” highlighting that the stablecoin will modernize payments, settlement, and treasury workflows while enabling secure, automated value transfers.
Futoon Hamdan AlMazrouei, Group Head of Personal, Business, Wealth and Privileged Client Banking at FAB, added that the milestone demonstrates how stablecoins can be integrated responsibly into the financial system when built to meet stringent regulatory and risk requirements.
Built for Institutional and Government Use
DDSC is not intended for retail use but is specifically designed as a compliant digital instrument for high-value, institutional, and government-led applications.
Key use cases include large-scale payments and collections, high-value settlement and treasury operations, enhancing trade and supply-chain flows, and enabling programmable financial services for regulated entities. The stablecoin will be made available to FAB’s institutional and enterprise clients through multiple approved platforms.
The Technology Powering DDSC
DDSC will operate on ADI Chain, an institutional-grade layer-2 blockchain developed by the Abu Dhabi-based ADI Foundation.
ADI Chain is purpose-built to meet the demands of regulated financial entities, focusing on governance, scalability, and institutional performance. It is engineered to integrate seamlessly with traditional financial systems, allowing regulated organizations to participate in the digital asset economy while maintaining strict compliance and security controls.
Ajay Hans Raj Bhatia, Group Chief Executive of Sirius International Holding, noted that the launch signals “a new phase of regulated digital finance” and confirmed that his company will support institutional adoption using the robust ADI blockchain infrastructure.
About DDSC
DDSC is a UAE dirham-backed stablecoin approved by the Central Bank of the UAE. Developed by IHC, Sirius International Holding, and FAB, it operates on the ADI Chain blockchain and is designed for regulated institutional and government use cases. It aims to provide a secure and compliant digital financial instrument for payments, settlement, and treasury operations.
Source: Gulf Business
