Three of Abu Dhabi’s most powerful institutions—ADQ, First Abu Dhabi Bank (FAB), and International Holding Co.—are joining forces to launch a stablecoin backed by the UAE dirham. The move signals a major step in the region’s push toward modernizing digital payments under central bank oversight.
FAB to Lead Dirham Backed Stablecoin Development With Central Bank Support
According to a joint announcement, FAB will create the new digital currency, which will be pegged 1:1 to the UAE dirham and regulated by the UAE Central Bank. The goal is to enable faster, more secure, and more trusted blockchain-based transactions for both businesses and everyday users.
Hana Al Rostamani, CEO of First Abu Dhabi Bank, noted that the stablecoin has the potential to “transform how UAE consumers and businesses use and secure blockchain payments,” offering reliable, real-time settlement across different industries.
The partners have emphasized the need for full regulatory approval before the launch, ensuring compliance with legal frameworks and financial safety standards. Once approved, the stablecoin is expected to be integrated across various everyday use cases and emerging technologies, including machine-to-machine payments and artificial intelligence.
This isn’t the UAE’s first step into the stablecoin space. In December 2024, the central bank approved AE Coin, and more recently, on August 21, 2024, Tether announced plans to issue a UAE dirham-based stablecoin, expanding its presence in the Middle East.
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