{"id":117595,"date":"2026-05-22T00:00:00","date_gmt":"2026-05-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/?p=117595"},"modified":"2026-05-22T02:46:51","modified_gmt":"2026-05-22T02:46:51","slug":"why-does-the-uae-care-about-stablecoins","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2026\/05\/22\/why-does-the-uae-care-about-stablecoins\/","title":{"rendered":"Why does the UAE care about stablecoins?"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>For many in the region, stablecoins still sound like a far\u2011fetched gimmick<\/strong><strong> \u2014 a tool reserved for crypto bros and late\u2011night traders. <\/strong>But if you\u2019ve been paying attention to headlines in the UAE, they\u2019re slowly creeping into much more of our day-to-day \u2014 stablecoins can now be used to settle <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/05\/12\/this-morning-g42s-usd-1-bn-kenya-data-center-hits-another-speedbump-another-firm-adopts-ae-coin-payments\/\" style=\"\">government services fees<\/a> and pay for <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/75388f2a-4a80-4028-970c-497c9e666391\/this-morning:-sharjah-islamic-bank-sounds-out-investors-for-at1-sukuk-sale-%2B-pay-for-your-flights-with-stablecoin%3F\" style=\"\">flight tickets<\/a> and <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/9e61c17c-b8dd-44e7-9820-ea9382aa0797\/this-morning:-canada-in-talks-with-the-uae-over-ai-investments-%2B-taxi-stablecoin-payments-are-now-a-thing-in-abu-dhabi\" style=\"\">taxi rides<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Some of you might think: Why would I want to pay for a flight ticket using stablecoins?<\/strong> Why is that a need? And the answer is: For many, it\u2019s not a need. And that\u2019s also not what building stablecoin infrastructure is about \u2014 the use cases for stablecoins stretch way beyond day-to-day retail usage. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The UAE has spent over a decade modernizing its financial infrastructure and creating a predominantly digital and cashless economy. <\/strong>While, yes, that\u2019s helped streamline payments and make life easier for residents and citizens alike, the bigger picture is to become a global-facing economy that can interact with as many different players as possible, in the fastest and cheapest way possible. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The logical next step to achieve that? Building blockchain-based rails that could support cross-border transactions <\/strong>as well as offer optionality for people living in and visiting the UAE. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>That\u2019s why the UAE is on a major drive to create AED-backed stablecoins<\/strong> that can be used for trading, business treasury purposes, and even retail. AE Coin was the <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2024\/12\/11\/ae-coin-receives-the-final-green-light-for-launch-from-cbuae\/\" style=\"\">UAE\u2019s first CBUAE-licensed stablecoin<\/a>, with early adoption by <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/01\/07\/this-morning-ae-coin-to-be-integrated-into-network-internationals-pos-and-e-commerce-payment-infrastructure-non-oil-private-sector-ended-2025-firmly-in-growth-territory\/\" style=\"\">Network International<\/a>, <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2025\/12\/05\/investcorp-acquires-us-industrial-property-portfolio-nrtc-takes-over-ripe-organic\/\" style=\"\">7X<\/a>, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/75388f2a-4a80-4028-970c-497c9e666391\/this-morning:-sharjah-islamic-bank-sounds-out-investors-for-at1-sukuk-sale-%2B-pay-for-your-flights-with-stablecoin\" style=\"\">Air Arabia<\/a>, the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/aadd1e3c-9594-4fcb-b19f-3b3fb200ea0b\/this-morning:-more%253cmark%253e-ae-coin%253c%2Fmark%253e-payments-as-crypto-goes-mainstream-%2B-abu-dhabi-airports-sees-13%2525-y-o-y-increase-in-passengers-in-1h\" style=\"\">Abu Dhabi Judicial Department<\/a>, and <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/9e61c17c-b8dd-44e7-9820-ea9382aa0797\/this-morning:-canada-in-talks-with-the-uae-over-ai-investments-%2B-taxi-stablecoin-payments-are-now-a-thing-in-abu-dhabi\" style=\"\">Tawasul Taxis<\/a>. Zand Bank secured approval for <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2025\/11\/20\/pe-firm-kkr-expands-to-abu-dhabi-zand-aed-backed-stablecoin-gets-approval\/\" style=\"\">Zand AED<\/a>, <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/01\/08\/this-morning-rakbank-is-the-latest-to-join-the-stablecoin-party-contract-awards-fell-in-2025\/\" style=\"\">Rakbank<\/a> received approval to launch its own stablecoin, while IHC, ADQ, and First Abu Dhabi Bank are also developing one. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>**A quick primer for those who are unfamiliar:<\/strong> Stablecoins are a tokenized currency, backed 1:1 by liquid fiat reserves, whether that\u2019s the USD, the AED, or another currency. Unlike BTC, whose value fluctuates based on market sentiment, stablecoins are linked to their fiat-denominated currency, offering more stability. <\/p>\n<p class=\"tag-border-left\">The current lay of the land <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The UAE is currently building liquidity for blockchain-based payments and stablecoins<\/strong>, Economy and Tourism Department AI CEO and Dubai Blockchain Center CEO Marwan Alzarouni tells EnterpriseAM. \u201cWe\u2019re scaling up that liquidity, but we\u2019re doing so in a very gradual, measured way that also covers all of the technology and underlying infrastructure that is needed,\u201d he explains. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The volume of stablecoins traded in the UAE across trade finance, remittances, and B2B settlement surged over 40% y-o-y in 2025<\/strong>, supported by a progressive regulatory landscape, CEO of decentralized finance trading platform DYDX and author of Arabian Crypto Charles D\u2019Haussy tells EnterpriseAM. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>\u201cThe market in the UAE is being activated by business first, while retail will follow after<\/strong>,\u201d D\u2019Haussy adds. How do businesses benefit from the use of stablecoins? \u201c[Stablecoins] are really an infrastructural play that runs across many types of businesses,\u201d Group Chief Strategy and Venture Officer at Fuze Serena Sebastiani tells us. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">(<strong>Why should you to listen to Sebastiani?<\/strong> She led PwC\u2019s fintech and digital asset platform for the Middle East for 15 years and has worked with regulators like the Virtual Assets Regulatory Authority, the Central Bank of the UAE, and the Saudi Central Bank.)<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Crypto trading still accounts for around 60-65% of all use cases in the UAE<\/strong>, Sebastiani says, noting that other use cases are expanding. \u201cWe\u2019re seeing more platforms and use cases for the AED-denominated stablecoins, but effectively it's still very early stages,\u201d she adds. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>B2B transactions are where stablecoins currently offer an immense value<\/strong>, experts tell us. \u201cStablecoins facilitate commercial trades, cross-border payments, cards, and collection in those countries where it's difficult to repatriate USDs or to get USD liquidity,\u201d Sebastiani explains. <\/p>\n<p class=\"tag-border-left\">A workaround for FX volatility in foreign investment destinations? <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The<\/strong> <strong>UAE\u2019s foreign investment footprint is now massive.<\/strong> The likes of Adnoc, Taqa, DP World, Emirates, Etisalat, IHC, ADQ, and sovereign funds are present in dozens of developing markets \u2014 including countries with extreme political and financial instability. In countries like Egypt, Pakistan, Ethiopia, and post\u2011war Syria, USD access is volatile, banking rails are weak, and repatriating income can take months. Stablecoins are the workaround.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>\u201cBusinesses like airlines have money stuck in places for 9-12 months, sometimes even longer, because it\u2019s very difficult to repatriate USDs out<\/strong> because of a lack of liquidity,\u201d Sebastiani explains. \u201cStablecoins give them that liquidity bridge to repatriate funds before they [lose value],\u201d she adds. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It also makes the entire process of settling and trading goods more efficient<\/strong>, Alzarouni says, especially when taken with other digitization measures into account. \u201cYou transfer goods more swiftly, settle digitally, and complete the entire journey without friction,\u201d Alzarouni explains, adding that integrating AI and digital trade platforms with those types of payment rails and infrastructure can make for a much smoother, faster end-to-end settlement journey for trade. <\/p>\n<p class=\"tag-border-left\">And there are more use cases for remittances and tourists <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>About 90% of the UAE\u2019s residents are expats, and the UAE was the third-largest sender of remittances globally as of last year<\/strong>, according to <a target=\"_blank\" href=\"https:\/\/ae.visamiddleeast.com\/en_AE\/about-visa\/newsroom\/press-releases\/prl-10092025.html\" style=\"\">Visa<\/a>. But remittances come with high fees \u2014 the global cost is estimated at an average of 6.5%, Sebastiani says. Stablecoins lower that by 40%, she explains. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It\u2019s not just about the cost but about efficiency<\/strong>, particularly in jurisdictions where legacy Swift networks falter, and transaction processes take around five days. \u201cRemittances we facilitate via stablecoins only take about 20 minutes, instead of the usual five days,\u201d Sebastiani notes.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>That ease of access also makes the lives of tourists easier <\/strong>\u2014 if they have an AED-denominated stablecoin wallet or a card, they don\u2019t need to exchange their money to AED and be subject to exchange rates, Sebastiani says. That\u2019s especially important for places that are tourism- and conference-heavy like the UAE, she adds. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">The caveats<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>There\u2019s still an \u201cillicit activity\u201d stigma that needs to be overcome. <\/strong>\u201cStablecoins are much more traceable than [banknotes] or banking transactions,\u201d Alzarouni says. While transactions are pseudo-anonymous, Alzarouni explains that we\u2019re already seeing the emergence of \u201con-chain verifiable credentials with blockchain-based digital identities,\u201d which allows transactions to happen fully on-chain. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>SOUND SMART- <\/strong>Digital decentralized identities allow authorized third parties to verify a user's real-world identity once using cryptographic proof while protecting the user\u2019s identity. That means there\u2019s a know-your-customer (KYC) process involved, with smart contracts instantly reading those cryptographic attestations to verify compliance before executing a transfer.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The key here is interoperability and working with other jurisdictions to standardize the rules and regulations governing stablecoins<\/strong>, our sources tell us. \u201cThe UAE has its own role, but we\u2019re also not an island,\u201d Alzarouni says. \u201cWe have to work with the other jurisdictions, whether that\u2019s Southeast Asia, the US, or Europe, when it comes to KYC\/AML and due diligence,\u201d he adds, referencing collaboration like <a target=\"_blank\" href=\"https:\/\/www.zand.ae\/en\/news\/zand-and-ripple-in-strategic-partnership-to-power-digital-economy-with-stablecoin-and-blockchain-innovations\" style=\"\">Zand\u2019s with Ripple\u2019s USD-denominated stablecoin<\/a> as helping build a mature ecosystem around that infrastructure. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>AED-denominated stablecoins are still at very early stages of growth<\/strong>, but their rise, along with others, is increasingly helping the ecosystem mature and challenging the distribution of USD-denominated stablecoins, D\u2019Haussy observes. And that\u2019s needed, he says: \u201cIf your domestic financial system is built on someone else\u2019s infrastructure \u2014 the USD, for example \u2014 you don\u2019t have freedom. You\u2019re not in control of anything,\u201d he explains. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Currently, payment using stablecoins in the UAE is restricted to AED-backed stablecoins<\/strong> \u2014 and that\u2019s done for a reason. \u201cCurrencies need to be sovereign,\u201d Sebastiani says. \u201cI think we will see more and more local currency-denominated stablecoins actually, and that will facilitate a lot of exchange between different currency-denominated stablecoins and will enable easier swaps instead of having to do on-ramp and off-ramp,\u201d Sebastiani explains.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business and retail use cases range from faster, less costly remittances to helping businesses repatriate funds from developing markets<\/p>\n","protected":false},"author":1,"featured_media":117596,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2414],"tags":[107,7,1393,1341,2413],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-117595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-crypto","tag-enterpriseam-uae","tag-finance","tag-tech","tag-the-big-story-today","wpautop","entry"],"acf":{"mongo_id":"e80cf908-c349-44e9-a03b-d65719a09a6f","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/3\/891.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Why the UAE cares about stablecoins","related_issue":[117590],"teaser":"Business and retail use cases range from faster, less costly remittances to helping businesses repatriate funds from developing markets"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why does the UAE care about stablecoins? 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