Abu Dhabi’s ADQ, FAB, IHC to Launch Dirham-Backed Stablecoin Under CBUAE Supervision

UAE Moves Closer to Blockchain-Powered Economy with Dirham-Backed Stablecoin Initiative

Abu Dhabi, April 30, 2025 —Three of Abu Dhabi’s most influential companies, ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC), have revealed plans to introduce a stablecoin based on the UAE Dirham (AED), marking a significant step in reinventing the UAE’s financial environment. The project, which will function under the Central Bank of the UAE’s (CBUAE) regulatory framework, represents a major advancement in the country’s efforts to use blockchain technology to digitize its economy.

A Regulated Stablecoin Backed 1:1 by the UAE Dirham
The proposed digital currency will be fully backed by the UAE Dirham on a one-to-one basis, ensuring stability, transparency, and public trust. Designed as a scalable and secure payment system, the stablecoin aims to simplify everyday transactions for banks, institutions, individuals and self-governing AI systems. It is expected to help the UAE’s macro-economic goal of creating a technologically advanced, digitally integrated economy.

The stablecoin’s revolutionary potential was highlighted by Mohammed Hassan Al Suwaidi, Managing Director and Group CEO of ADQ, who stated that it will “create new opportunities for value creation in a secure, efficient financial ecosystem.”

Based on the ADI Blockchain of Sovereign Grade

The ADI blockchain, a cutting-edge distributed ledger technology created by the ADI Foundation, a non-profit organization with headquarters in the United Arab Emirates, serves as the basis for the stablecoin. The blockchain infrastructure is constructed to the highest standards of cybersecurity and transparency and complies completely with national data and digital security requirements in the United Arab Emirates.

This localized, sovereign-grade blockchain will enable a highly secure, regulatory-compliant financial architecture that can facilitate tokenized assets, automated machine-to-machine (M2M) transactions, and rapid financial settlements across industries.

Enabling Innovation in Various Sectors in Finance and Commerce

A variety of industries, including finance, retail, cross-border trade and AI-powered services, are expected to be significantly impacted by the introduction of a stablecoin backed by Dirhams. While improving the ease of digital payments by reducing transaction costs and settlement times, the stablecoin can provide future-ready use cases such as automated payments between AI agents and smart devices.

The plan also supports Abu Dhabi’s goal of becoming a global hub for Web3 and digital banking, complementing Dubai’s advances in this area through the Virtual Asset Regulatory Authority (VARA).

Aligning with a broader digital finance strategy

The announcement follows a series of major digital finance developments in the UAE. Abu Dhabi Global Market (ADGM) partnered with Chainlink Labs in March to explore smart contracts and decentralized data infrastructure. Furthermore, the recent $2 billion investment in MGX, a sovereign wealth fund affiliated with Abu Dhabi, indicates a strong state-level interest in developing the country’s digital asset footprint.

The exact launch date for the dirham-backed stablecoin has yet to be announced, but the technical infrastructure and regulatory oversight are in place, suggesting that implementation is imminent.

With this move, the UAE is solidifying its position as a pioneer in digital finance innovation and blockchain adoption in the Middle East and around the world.