Abu Dhabi’s leading financial and investment institutions have received regulatory approval to launch a UAE dirham-backed “institutional” stablecoin aimed at high-value settlement and trade transactions, marking a significant step in the country’s regulated digital finance strategy.
The initiative is led by First Abu Dhabi Bank (FAB), which will issue the stablecoin, alongside International Holding Company (IHC) and its technology arm Sirius International Holding. The digital currency has been approved by the Central Bank of the United Arab Emirates and will operate on ADI Chain, a blockchain infrastructure designed for institutional-grade financial applications.
The stablecoin, pegged 1:1 to the UAE dirham, is designed primarily for institutional and government use rather than retail investors. Its intended applications include high-value domestic settlements, treasury operations, trade finance, and supply-chain transactions, offering regulated entities a blockchain-based mechanism for secure and compliant value transfer.
Officials say the project aims to enhance efficiency in large-scale payments and cross-border trade flows while maintaining strict regulatory oversight. The launch positions the UAE among a growing number of global financial hubs — including Singapore, Hong Kong, the United Kingdom, Switzerland, France, Japan, and the United States — that are developing regulated digital asset frameworks designed to bridge traditional banking systems with blockchain-based financial infrastructure.
By targeting institutional settlement and commercial transactions, the new stablecoin reflects Abu Dhabi’s broader strategy to integrate digital finance infrastructure into its financial services ecosystem, reinforcing its ambition to serve as a regional center for fintech and next-generation payment systems.
