UAE: New stablecoin backed by dirhams to be launched by IHC, ADQ, FAB

29/04/2025 02:35 AST

Three major companies in the UAE , namely IHC, ADQ and First Abu Dhabi Bank, said on Monday that they plan to launch a new stablecoin backed by dirhams.

To be regulated by the Central Bank of the United Arab Emirates (CBUAE), FAB - the largest bank in the country - will issue the stablecoin following the regulatory approvals.

The companies said in a joint statement on the Abu Dhabi Securities Exchange - where they are listed - that the new stablecoin will "revolutionise the ease of making payments and doing business, both locally and globally."

The UAE firms said that 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.

"The launch of the stablecoin marks a pivotal step in our commitment to strengthening the UAE's digital infrastructure ecosystem. As we move forward towards an increasingly digital and connected economy, the stablecoin will provide a solution that is secure, efficient and scalable, while creating new opportunities for growth and value creation," said Mohamed Hassan Alsuwaidi, managing director and group CEO of ADQ.

"This new stablecoin represents a breakthrough in the development of digital currencies. By bringing IHC's expertise in blockchain and fintech, we look forward to working with our partners to explore its vast potential and drive innovation in the UAE," said Syed Basar Shueb, CEO of IHC.

"This new stablecoin represents a transformative step forward and will revolutionise the way both consumers and businesses engage with trusted blockchain payments in the UAE," said Hana Al Rostamani, Group CEO of FAB.

How popular are stablecoins?
Stablecoins are a form of cryptocurrency. But unlike Bitcoin and other similar cryptos, stablecoins are designed to maintain their value by pegging their prices to a stable asset, such as fiat currency and gold, etc.

Quoting Allium & Visa data, the World Economic Forum said total supply of stablecoins in circulation reached $162 billion last year, which will jump to $208 billion. Total transfer volume hit $27.6 trillion last year, surpassing the combined volume of Visa and Mastercard transactions in 2024.

Tether (USDT) is the largest stablecoin. Released in 2014, it is pegged to the US dollar and is available on several major blockchains like Ethereum, Solana and Tron.

Leveraging blockchain
The companies said that the new stablecoin - which will also support emerging digital use cases such as machine-to-machine and AI - 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.

"This stablecoin marks a pivotal milestone in the UAE's journey toward a more inclusive and digitally empowered economy," said Guillaume de La Tour, CEO of ADI Foundation.

Khaleej Times