FAB’s Bold Move into UAE Dirham-Backed Stablecoin: A Game-Changer for the Digital Economy

In a groundbreaking development for the UAE’s digital economy, three major institutions—International Holding Company (IHC), Abu Dhabi Developmental Holding Company (ADQ), and First Abu Dhabi Bank (FAB)—have announced plans to launch a Dirham-backed stablecoin. The initiative, which is set to transform the digital payments landscape, has garnered significant attention as it is expected to receive approval from the Central Bank of the UAE (CBUAE) in the near future. FAB, the UAE’s largest financial institution, will issue the stablecoin, positioning itself at the forefront of the region’s blockchain and digital currency revolution.

This stablecoin, fully regulated by the CBUAE once approved, aims to provide businesses and consumers with a secure and scalable digital currency. Backed by the UAE Dirham, the stablecoin is poised to offer a stable alternative to volatile digital assets, enhancing cross-border payments, driving financial inclusion, and supporting the UAE’s broader ambitions of becoming a global leader in digital finance and blockchain technology. It is designed to facilitate a wide array of transactions, from everyday consumer payments to complex institutional business operations, while also supporting emerging use cases such as machine-to-machine payments and AI-driven financial services.

The new stablecoin will be launched on the ADI blockchain, an advanced technology developed by the ADI Foundation, based in the UAE. The ADI blockchain aims to connect established financial systems with next-generation blockchain infrastructure, providing a secure and compliant network for digital currency transactions. With strategic partnerships in over 20 countries, the ADI Foundation is focused on advancing global financial inclusion and offering scalable solutions for digital payments.

Strengthening the UAE’s Digital Economy

The launch of the Dirham-backed stablecoin marks a pivotal moment in the UAE’s journey toward a fully integrated digital economy. By enabling secure, efficient, and transparent transactions, the stablecoin is expected to accelerate the adoption of blockchain technology, benefiting various industries, including finance, trade, and commerce.

Earlier this year, AE Coin became the first stablecoin to be granted a license by the Central Bank of the UAE, underscoring the country’s commitment to developing a regulated digital assets ecosystem. In addition, several other financial institutions have applied for similar licenses, with one bank already receiving approval but not announced—though not from a tier-one bank—and two more are expected to follow soon. This growing support for regulated stablecoins reflects the UAE’s ambition to become a global leader in blockchain innovation.

The collaboration between IHC, ADQ, and FAB highlights the UAE’s commitment to advancing its digital financial infrastructure and creating a supportive environment for blockchain-based financial services. Each partner brings unique expertise and resources to the table, ensuring the successful launch and adoption of the stablecoin.

Key Remarks from Industry Leaders

The announcement has been met with enthusiasm from the founding partners, who emphasized the transformative potential of the new stablecoin.

H.E. Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, emphasized the stablecoin’s role in reinforcing the UAE’s digital economy. “The launch of this stablecoin is a critical step in our commitment to strengthening the UAE’s digital infrastructure. By providing a secure and scalable digital currency, we are opening up new opportunities for innovation and growth across industries,” Alsuwaidi said.

Syed Basar Shueb, CEO of IHC, expressed pride in the company’s role in the project, highlighting its potential to reshape the global financial landscape. “IHC’s expertise in blockchain and fintech is integral to the creation of this stablecoin. We look forward to collaborating with our partners to drive further innovation and unlock new possibilities for the UAE’s digital economy,” Shueb remarked.

FAB’s Group CEO, Hana Al Rostamani, described the stablecoin as a significant step for the UAE’s fintech sector. “This stablecoin will revolutionize the way consumers and businesses interact with blockchain technology. By creating a stable, regulated currency, we are enabling more secure and efficient digital transactions. FAB is proud to play a key role in this groundbreaking initiative,” Al Rostamani commented.

Guillaume de La Tour, CEO of the ADI Foundation, underscored the importance of the stablecoin for advancing digital finance in the UAE and beyond. “By leveraging the ADI blockchain, we are creating a robust and compliant infrastructure for digital transactions, ensuring that businesses and consumers can engage in secure, transparent exchanges. This stablecoin represents a major milestone in the UAE’s journey toward a more inclusive digital economy,” de La Tour said.

A Vision for the Future

The Dirham-backed stablecoin is a key component of the UAE’s broader strategy to foster financial inclusion, support innovation, and enhance its position as a global hub for digital finance. By offering a regulated, stable alternative to traditional cryptocurrencies, the stablecoin will help bridge the gap between the existing financial system and emerging blockchain technology.

As the UAE continues to lead the charge in blockchain innovation, this new stablecoin will play an important role in shaping the future of digital payments, both within the country and internationally. The growing interest in regulated stablecoins in the UAE, coupled with the involvement of leading institutions such as IHC, ADQ, and FAB, signals a promising future for the region’s digital economy.

With the Central Bank of the UAE’s approval expected soon, the Dirham-backed stablecoin is poised to make a significant impact on the global financial landscape, driving the next wave of digital transformation and positioning the UAE as a true leader in fintech innovation.