Key Takeaways:
- Abu Dhabi’s ADQ, FAB, and IHC are collaborating to launch a dirham-pegged stablecoin, pending regulatory approval from the UAE Central Bank.
- The stablecoin will operate on the ADI blockchain and aims to support both traditional payments and emerging tech like AI-driven applications.
- The initiative positions the UAE as a leader in blockchain innovation while reducing reliance on US dollar-based stablecoins.
Three major Abu Dhabi institutions — ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC) — have partnered to develop a new stablecoin pegged to the UAE’s national currency, the dirham.
Announced on April 28, the project aims to strengthen the country’s digital financial infrastructure and boost its position in global blockchain innovation.
Today, IHC, alongside @Adq_Official and First Abu Dhabi Bank @FABConnects, announced plans to launch a new Dirham-backed stablecoin, which will be fully regulated by the Central Bank of the UAE and issued by FAB.
— IHC (@ihc__official) April 28, 2025
The new #stablecoin will transform payments and business… pic.twitter.com/gWnVjX0LoC
The stablecoin will be regulated by the UAE’s Central Bank and backed by the dirham.
It will operate on the ADI blockchain, created by the UAE-based ADI Foundation to integrate blockchain into established financial and governmental systems.
Regulatory approval is still pending. Beyond conventional payments, the stablecoin is envisioned for use in emerging technologies, including machine-to-machine transactions and AI-driven platforms.
ADQ, founded in 2018, plays a key role in managing critical infrastructure and global supply chains, while FAB is the largest bank in the UAE following a 2017 merger.
IHC, valued at over $243 billion, is a major Abu Dhabi conglomerate.
The launch reflects a growing global trend where nations seek stablecoins tied to local currencies, offering an alternative to dominant U.S. dollar-based stablecoins like Tether and USDC, which control 90% of the $230 billion market cap.
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