FAB, IHC and ADQ Announce Plans to Launch UAE Dirham-Backed Stablecoin

First Abu Dhabi Bank, International Holding Company, and ADQ have announced plans to launch a stablecoin backed by the UAE Dirham, fully regulated by the Central Bank of the UAE.

The digital currency is designed to support digital economy transactions, providing a stable, regulated digital payment instrument pegged to the national currency. The involvement of three of Abu Dhabi's most prominent institutions signals the strategic importance placed on the initiative and the scale of ambition behind it.

FAB, the UAE's largest bank by assets, brings banking infrastructure and regulatory expertise. IHC, one of the largest holding companies in the region, provides capital and strategic direction. ADQ, the Abu Dhabi sovereign wealth fund, adds financial backing and connections across the emirate's economic ecosystem.

A Dirham-backed stablecoin regulated by the Central Bank would provide the UAE with a sovereign digital currency alternative to privately issued stablecoins, most of which are denominated in US dollars. The instrument could facilitate domestic and cross-border digital transactions while maintaining regulatory oversight and consumer protections.

The announcement positions the UAE at the forefront of regulated stablecoin development in the Gulf. While several countries have been exploring central bank digital currencies, the UAE's approach of partnering with major private sector institutions to issue a regulated stablecoin represents a distinctive model.

The stablecoin is expected to support a range of use cases including digital commerce, cross-border trade settlement, and programmable payments within the UAE's growing digital asset ecosystem.