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Dirham-pegged UAE’s regulated stablecoin is making headlines as Abu Dhabi institutions move towards blockchain dominance.
ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC) have partnered for this ambitious project. Pending regulatory approval, the stablecoin will be backed by the UAE’s national currency, the dirham. It will operate on the ADI blockchain, a system tailored for secure and scalable government-level blockchain use. The Dirham-pegged UAE’s regulated stablecoin is poised to serve new use cases like machine-to-machine payments and AI-driven transactions. The trio’s vision is clear: strengthen the UAE’s digital infrastructure and push it to the forefront of global blockchain innovation. If approved, it will become one of the few national currency-backed stablecoins directly regulated by a central bank.
Blockchain ambition driven by heavyweights
ADQ, founded in 2018, focuses on critical infrastructure and strategic sectors across global supply chains. Meanwhile, IHC, a conglomerate with a market cap of over $243 billion, brings deep ties to Abu Dhabi’s ruling elite. FAB, the UAE’s largest bank, adds unparalleled financial expertise to the venture. Together, they form a powerhouse coalition to ensure the Dirham-pegged stablecoin gains strong traction. This partnership isn’t just about financial transactions. It aims to integrate blockchain deeply into industries, from finance to manufacturing, enhancing efficiency through AI and IoT.
The Dirham-pegged UAE’s regulated stablecoin emerges amid global shifts in the stablecoin ecosystem. Other countries are crafting alternatives to US dollar-dominated stablecoins like Tether and USDC. Russia, facing sanctions, is developing its own stablecoin.
However, experts, like those at Citigroup, predict that US dollar-based stablecoins will continue to dominate globally.
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Dirham-pegged UAE’s regulated stablecoin could lead the Middle East crypto wave
Despite that, the UAE’s approach focuses more on national sovereignty and innovation rather than purely competing in the global stablecoin market. A centralized, dirham-backed stablecoin could enhance trust, transparency, and security within the UAE’s growing fintech space.
If successful, this stablecoin could serve as a model for the entire Middle East region. It represents a shift toward sovereign-backed digital currencies with practical, real-world applications. Given the UAE’s progressive stance on blockchain and crypto regulation, the project could set new standards worldwide. The initiative underlines a broader vision where national economies fuse traditional finance with decentralized innovation.
