Abu Dhabi: IHC, ADQ, and First Abu Dhabi Bank (FAB) have announced plans to launch a new stablecoin backed by Dirhams, which will be fully regulated by the Central Bank of the United Arab Emirates (CBUAE) and issued by the UAE's largest bank, FAB (subject to regulatory approval).
According to Emirates News Agency, the new stablecoin will revolutionise the ease of making payments and doing business, both locally and globally, putting the UAE at the forefront of global blockchain innovation as a leading fintech hub, while strengthening UAE's digital infrastructure.
The stablecoin backed by Dirhams is designed to enable payment for the world where identity, governance, and value flow freely, securely, and verifiably. This stablecoin will be used as a reliable digital currency across a wide range of everyday scenarios - by citizens and consumers, businesses, and institutions. It will also support emerging digital use cases such as machine-to-machine and AI.
The new stablecoin will operate on the ADI blockchain, a cutting-edge technology developed in the UAE by the ADI Foundation, which will provide a compliant distribution network for blockchain payments. ADI Foundation connects established financial systems with next-generation blockchain technology to create real-world impact, allowing citizens of emerging countries to compete and operate on a global scale, which previously would have been impossible. ADI Foundation already has strategic partnerships with governments in over 20 countries.
Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, stated that the launch of the stablecoin marks a pivotal step in their commitment to strengthening the UAE's digital infrastructure ecosystem. As the economy becomes increasingly digital and connected, the stablecoin is expected to provide a secure, efficient, and scalable solution, creating new opportunities for growth and value creation.
Syed Basar Shueb, CEO of IHC, expressed pride in playing a key role in the creation of the stablecoin, highlighting it as a major breakthrough in the development of digital currencies. He looks forward to working with partners to explore its vast potential and drive innovation in the UAE.
Hana Al Rostamani, Group Chief Executive Officer of FAB, emphasized FAB's role as a founding partner of this leading technology, positioning it at the forefront of global innovation and driving growth within the UAE's dynamic fintech sector. She described the stablecoin as a transformative step forward that will revolutionize the way consumers and businesses engage with trusted blockchain payments in the UAE.
Guillaume de La Tour, CEO of ADI Foundation, highlighted the significance of the stablecoin in advancing the UAE's journey toward a more inclusive and digitally empowered economy. By leveraging the ADI blockchain, the stablecoin aims to enable secure, transparent, and efficient transactions at scale, aligning with the mission to advance sustainable digital transformation globally.
The new stablecoin is expected to have a significant impact on various industries, including finance, commerce, and trade. Its launch marks an important step towards realizing the UAE's vision of becoming a leading hub for innovation and financial technology.