Abu Dhabi has launched a new dirham-backed stablecoin, offering businesses a secure digital alternative to traditional banking. This is ideal for streamlining payments and managing cash flow, according to a recent announcement. The emirate is intensifying its push into the crypto sector with this stablecoin, aiming to change digital payments and solidify its status as a global technology hub.
IHC and FAB Spearhead Stablecoin Launch
Abu Dhabi’s sovereign wealth fund ADQ, the prominent conglomerate International Holding Company (IHC), and First Abu Dhabi Bank (FAB) have collaborated to introduce the dirham-backed stablecoin, as confirmed by officials today. Regulated by the UAE Central Bank, this digital currency is pegged to the UAE dirham, ensuring stability and making it well-suited for secure and efficient transactions.
The launch aligns with the UAE’s broader strategy to expand its digital asset ecosystem, promoting advancements in finance and technology. Abu Dhabi’s crypto efforts gained traction in 2018 when the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) established a regulatory framework for digital assets.
Since then, the emirate has reportedly attracted numerous crypto firms, though it has encountered challenges, such as the $12 million fine levied on Hayvn Group in April 2025 for inadequate anti-money laundering controls. This stablecoin marks a significant milestone, merging traditional finance with blockchain technology.
Welcoming Crypto and Its Benefits
Abu Dhabi’s progressive stance on crypto reflects its ambition to build a modern, tech-forward economy. The UAE’s forward-looking regulations, including a 2024 framework inspired by the Markets in Crypto-Assets (MiCA), have positioned the emirate as a magnet for global crypto businesses. The new stablecoin promises faster and more cost-effective cross-border payments, improved access to financial services, and seamless integration with decentralized finance (DeFi) platforms.
Residents could see easier retail transactions, positioning Abu Dhabi as a leader in digital finance. Similar launches include PayPal’s PYUSD in 2023, now offering a 3.7% yield, and Ripple’s RLUSD, integrated into cross-border payments in 2025.
These examples highlight the growing role of stablecoins in global finance, with Abu Dhabi’s effort poised to rival them. By leveraging blockchain’s efficiency, Abu Dhabi is not only boosting its economy but also setting a model for other nations.
This launch confirms Abu Dhabi’s ambition to lead in digital innovation, with the stablecoin expected to drive economic growth and global competitiveness. As the crypto landscape changes, Abu Dhabi is ready to shape its future.
