IHC, ADQ, and First Abu Dhabi Bank (FAB) plan to launch a new AED-backed stablecoin, according to an ADX disclosure (pdf). The new stablecoin will be issued by FAB and fully regulated by the Central Bank of the UAE (CBUAE). It will operate on the ADI blockchain, developed by the ADI Foundation.

SOUND SMART- Stablecoins are digital currencies pegged to fiat currencies, making them less volatile alternatives to BTC and ETH.

“This stablecoin will be used as a reliable digital currency across a wide range of everyday scenarios — by citizens and consumers, businesses and institutions- by citizens and consumers, businesses and institutions,” the statement said. “It will also support emerging digital use cases such as machine-to-machine and AI.”

REMEMBER- AE Coin became the UAE’s first AED-pegged stablecoin to receive final approval from the CBUAE for launch in December 2024, following the issuance of a regulatory framework by the Financial Services Regulatory Authority (FSRA) for stablecoin issuance in the ADGM.

The involvement of three big powerhouses gives further impetus to the burgeoning crypto sector in the UAE, and shows signs of stablecoin adoption becoming more mainstream — especially as traders and consumers alike look for ways to bypass traditional systems and speed up payments. Other recent votes of confidence: ADX-listed crypto miner Phoenix Group and cryptocurrency giant Tether — owner of the world’s biggest stablecoin, USDT — are planning to launch an AED-pegged stablecoin, while AI investment firm MGX invested a bumper USD 2 bn via stablecoin in Binance earlier this year.

The story got ink in Reuters and Bloomberg

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