UAE's IHC, ADQ, and FAB collaborate to launch a Dirham-backed stablecoin, boosting digital finance.

The stablecoin aims for safe, fast payments both locally and globally, powered by ADI blockchain.

Abu Dhabi is heating up as a fintech leader. Three big-name UAE organizations—International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB)—have joined forces to make a new stablecoin backed by the UAE Dirham.This will enable safe and fast payments both locally and globally, powered by ADI blockchain technology.

The Central Bank of the UAE will fully regulate the stablecoin, which will be issued by FAB following the necessary approvals. The partnership brings together strength in financial support from IHC and ADQ, cutting-edge technology from ADI, and the official regulatory framework of the Central Bank of the UAE.

The new stablecoin will be used for everyday payments by people, businesses, and organizations in the UAE and around the world. It will also be useful for more complex digital transactions, always remaining fully compliant with the Central Bank’s regulations and backed by the local currency for complete safety and legality.

This initiative is a continuation of the UAE's broader goal to become a leading force in digital finance. Last year, the country introduced its first official stablecoin, known as AE Coin.

Recently, MGX, a local company, invested $2 billion in Binance, showcasing the region's strong interest in crypto and blockchain technology.

Syed Basar Shueb, CEO of IHC, highlighted the significance of the new Dirham-backed stablecoin in advancing digital finance.

"I am particularly proud of IHC's contribution through its blockchain expertise and capabilities in this project. Moreover, this partnership reflects the UAE's vision in taking a leadership role in the evolving landscape of digital currencies."

Mohamed Hassan Alsuwaidi, CEO of ADQ, added that this project aligns with ADQ's strategy to enhance the UAE's digital infrastructure and contribute to the nation's economic diversification efforts.

"We believe that this initiative will serve as a catalyst for innovation and ultimately strengthen the UAE's digital systems in the global financial domain."

As the UAE progresses with its Dirham-backed stablecoin, other countries like Russia are exploring their own national digital currencies.

Following difficulties with US sanctions, Russia is considering a stablecoin pegged to its ruble currency. This move is part of a broader trend with many countries investigating local currency–linked stablecoins or central bank digital currencies (CBDCs).

However, a report from Citigroup suggests that US dollar-backed stablecoins continue to dominate the market. Tether reportedly holds 90% of the $230 billion market, showing a 54% increase from last year.