IHC, ADQ, And FAB Introduce UAE Dirham-Backed Stablecoin To Enhance Digital Economy

A new stablecoin, backed by Dirhams and fully regulated by the Central Bank of the United Arab Emirates (CBUAE), is set to be launched by IHC, ADQ, and First Abu Dhabi Bank (FAB). This initiative aims to enhance payment systems and business operations both locally and globally. The stablecoin will be issued by FAB, pending regulatory approval.

The stablecoin will operate on the ADI blockchain, a technology developed in the UAE by the ADI Foundation. This platform connects traditional financial systems with modern blockchain technology, enabling global participation for citizens of emerging countries. The ADI Foundation has already formed strategic partnerships with governments in over 20 nations.

Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, stated: "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."

This stablecoin is designed to facilitate payments where identity, governance, and value can flow freely and securely. It will serve as a reliable digital currency for various everyday scenarios involving citizens, businesses, and institutions. Additionally, it will support emerging digital use cases like machine-to-machine transactions and AI applications.

Syed Basar Shueb, CEO of IHC, added: "This new stablecoin represents a major breakthrough in the development of digital currencies, and we are proud to have played a key role in its creation. 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."

The ADI Foundation's blockchain technology provides a compliant distribution network for blockchain payments. This allows citizens from developing countries to compete globally. The foundation's partnerships with over 20 countries further bolster this initiative's reach.

Guillaume de La Tour, CEO of ADI Foundation, commented: "This stablecoin marks a pivotal milestone in the UAE’s journey toward a more inclusive and digitally empowered economy. By leveraging the ADI blockchain, we are enabling secure, transparent, and efficient transactions at scale — built on technology developed right here in the UAE. The ADI Foundation is proud to support this visionary initiative that aligns with our mission to advance sustainable digital transformation around the world."

Future Prospects

The introduction of this stablecoin is expected to significantly influence industries such as finance, commerce, and trade. It represents an important step towards achieving the UAE's vision of becoming a leading hub for innovation in financial technology.

Hana Al Rostamani, Group Chief Executive Officer of FAB, affirmed: "As a founding partner of this leading technology, FAB is proud to be at the forefront of global innovation, driving continued growth within the UAE’s dynamic fintech sector. 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."

With inputs from WAM