Abu Dhabi’s ADQ, FAB and IHC Announce Plans for Dirham-Backed Stablecoin

The finance, commerce, and trade industries are projected to be major beneficiaries of this stablecoin.

Written by Radhika Parashar, Edited by David Delima | Updated: 29 April 2025 18:37 IST

Abu Dhabi’s ADQ, FAB and IHC Announce Plans for Dirham-Backed Stablecoin

Photo Credit: ADGM

The timeline for this stablecoin’s rollout remains awaited for now

Highlights

Abi Dhabi wishes to establish itself as an early adopter of stablecoins
Stablecoin regulations are being discussed in many nations like US
Stablecoins are crypto assets pegged to stable, fiat currencies

A group of Abu Dhabi-based institutions on Monday announced plans to launch a stablecoin, pegged to the United Arab Emirates Dirham (AED). The group comprises Abu Dhabi's ADQ sovereign wealth fund, the First Abu Dhabi Bank (FAB), and investment firm International Holding Company (IHC). The stablecoin will be regulated by the Central Bank of the United Arab Emirates (CBUAE). The group aims to introduce stablecoins into UAE's payment ecosystems.

Key Details About the Stablecoin

ADQ announced that the upcoming stablecoin will be promoted as a digital currency that can be used by citizens, consumers, businesses, and institutions. The stablecoin is also expected to support transactions between machines and AI models in the UAE.

“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, ADQ MD and Group CEO, in a prepared statement.

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The token will be supported on the ADI blockchain, developed by an Abu Dhabi-based non-profit firm called the ADI Foundation. The CEO of the firm said that because the ADI blockchain is developed within the UAE, it will ensure security and transparency within the stablecoin ecosystem.

The finance, commerce, and trade industries are projected to be major beneficiaries of this stablecoin. The token is also expected to establish the UAE as an early adopter of stablecoins, which are being subject to regulations in several parts of the world, including the US.

It's worth noting that the group has yet to announce a timeline of the rollout of this stablecoin.

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While Dubai has secured itself as a Web3 hotspot, overseen by the dedicated VARA regulatory authority, Abu Dhabi has also taken various steps to strengthen its foothold in the Web3 arena.

Earlier in March, the Abu Dhabi Global Market (ADGM) signed an MoU with Chainlink to enhance Web3 awareness and explore advanced blockchain use cases.

The Abu Dhabi-based sovereign wealth management fund MGX purchased a minority stake in Binance for $2 billion (roughly Rs. 17,403 crore), making it the first second-party stakeholder of what's touted as the world's largest crypto exchange.

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Further reading: Cryptocurrency, Abu Dhabi, ADQ, First Abu Dhabi Bank (FAB), investment firm IHC

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More