Crypto Momentum Grows in Abu Dhabi With New Stablecoin Push

Abu Dhabi is ramping up its presence in the digital asset arena as three of its largest institutions collaborate on the launch of a new dirham-backed stablecoin.

Sovereign wealth fund ADQ, conglomerate International Holding Company (IHC), and First Abu Dhabi Bank (FAB) unveiled their partnership on Monday, revealing plans for a digital token that will operate under the oversight of the UAE’s central bank.

Powered by the domestically developed ADI blockchain from the ADI Foundation, the stablecoin is designed to provide a reliable and trusted payment solution for individuals, businesses, and institutions.

It aims to facilitate transactions across both everyday and emerging digital use cases, solidifying Abu Dhabi's growing role in the global digital economy.

The companies said in a joint statement:

“This stablecoin will be used as a reliable digital currency across a wide range of everyday scenarios – by citizens and consumers, businesses and institutions.”

Stablecoin Launch Enhances UAE’s Digital Finance Leadership

Abu Dhabi's latest initiative underscores the UAE's broader ambition to establish itself as a global leader in digital assets.

The government has already made significant strides by enabling crypto payments, introducing early regulatory frameworks for digital assets, and fostering local blockchain ventures.

In December, the UAE made a landmark move with the launch of AE Coin, its first official stablecoin.

Just last month, the region saw a historic $2 billion investment from local group MGX into Binance, one of the largest deals in crypto history.

Looking ahead, the partners behind the new stablecoin believe it will further strengthen the UAE's digital infrastructure, cementing the country’s position at the cutting edge of global fintech innovation.

UAE's Fintech Expansion Reaches IoT and AI Sectors

H.E. Mohamed Hassan Alsuwaidi, CEO of ADQ, described the new initiative as a significant step in enhancing the UAE’s digital infrastructure, offering a secure and scalable solution for an increasingly interconnected economy.

FAB, the UAE’s largest bank, is poised to issue the stablecoin upon receiving regulatory approval.

Group CEO Hana Al Rostamani called the project a “ground-breaking development,” with the potential to transform trusted blockchain payments across industries.

Syed Basar Shueb, CEO of IHC, highlighted that the venture would unlock substantial opportunities and propel fintech innovation in the region.

The stablecoin is designed not only for traditional payments but also to support machine-to-machine and AI-driven transactions, targeting emerging sectors such as autonomous finance and the Internet of Things.

Guillaume de La Tour, CEO of the ADI Foundation, emphasized that the blockchain network would enable secure, transparent, and efficient transactions at scale, crucial for economies pursuing sustainable digital transformation.

With over $225 billion in assets, ADQ has been at the forefront of Abu Dhabi’s digital economy investments, and this latest stablecoin initiative aligns with the broader goal of modernising payment systems, diversifying economic pillars, and attracting global fintech talent to the UAE.