ADQ, FAB, and IHC plan a dirham-pegged stablecoin pending UAE Central Bank approval.
The stablecoin will run on the ADI blockchain to support digital and AI-driven transactions.
Three major institutions in Abu Dhabi have jointly announced the proposed launch of a new dirham-pegged stablecoin. The initiative, which awaits regulatory approval, brings together sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC).
Project Tied to UAE’s Regulatory and Currency Framework
According to a collaborative press release by the three companies, the new digital asset will be fully backed by the United Arab Emirates dirham and regulated by the country’s central bank. The partnership between the three institutions aims to create a compliant digital currency capable of supporting advanced digital applications.
The asset is expected to function across traditional and emerging sectors, including machine-to-machine interactions and artificial intelligence systems. FAB, the country’s largest banking institution, is positioned to issue the stablecoin.
The ADI blockchain will serve as the infrastructure layer for its operation, allowing regulated blockchain payments. The ADI Foundation, a non-profit organization based in the UAE, is leading this technical framework and has already partnered with governments in over 20 nations.
Institutions Aim to Strengthen Digital Infrastructure
ADQ was founded in 2018, and it is in charge of national investment in infrastructure and logistics facilities. Speaking of the stablecoin, its group CEO indicated that it is a significant development in the country’s drive to grow its digital ecosystem. On the other hand, IHC, which has over $243 billion in market capitalization, contributes to the blockchain technology on the project.
FAB, formed through a merger in 2017, contributes extensive banking infrastructure. The companies pointed out that the stablecoin is to drive fast, safe, and efficient payments in both the public and private domains. They stated that the initiative helps the UAE to build a full-fledged digital economy. Furthermore, they also pointed out that this would apply universally in finance, commerce, and enterprise business practices.
Blockchain Foundation Anchors Tech Platform
The ADI Foundation noted that the stablecoin would contribute to the company’s mission of developing sound and accessible blockchain systems. It further noted that the ADI blockchain was created in the UAE, demonstrating scalable and transparent digital operations.
The foundation connects current financial systems with decentralized platforms to support national and international applications. The project’s approval by the Central Bank of the UAE remains pending. Once cleared, the stablecoin will enter operational phases using the ADI blockchain as its technical base. The companies plan to move forward once all compliance standards are met.
Highlighted Crypto News Today: MetaMask All Set to Launch Self-Custody Crypto Card
