Abu Dhabi’s Financial Giants to Launch Dirham-Pegged Stablecoin

Three of Abu Dhabi’s financial heavyweights—sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the sprawling International Holding Company (IHC)—have announced plans to launch a dirham-pegged stablecoin. The initiative , revealed on April 28, is pending approval from the UAE’s central bank and could place the Emirates squarely in the global blockchain spotlight. A Sovereign Push Into Digital Currency The proposed stablecoin will be anchored to the UAE dirham and regulated under the Central Bank of the UAE’s supervision. According to the firms, the token won’t be limited to conventional financial use cases; it’s also designed to integrate into cutting-edge applications like machine-to-machine (M2M) payments and artificial intelligence (AI) systems. If approved, it will be issued on the ADI blockchain—an infrastructure developed by the ADI Foundation to support public-private blockchain collaboration across financial sectors. ADQ, a key architect behind the project, emphasized the move aligns with its vision of positioning the UAE as a leader in blockchain innovation and building a robust digital backbone for the country’s economy. Founded in 2018, ADQ manages some of the Emirates’ most strategic assets. Meanwhile, IHC, one of the region’s largest conglomerates, with a staggering $243 billion market cap, lends both capital and clout. FAB, the UAE’s biggest bank, rounds out the trio, offering credibility and reach across traditional finance. The Race to De-Dollarize the Stablecoin Market While the dollar remains king in the current stablecoin market —with USDT and USDC collectively commanding 90% of the $230 billion market—this new initiative signals a growing appetite for alternatives. Abu Dhabi’s ambitions echo broader global trends, as more nations begin exploring sovereign-backed digital assets as a hedge against dollar dominance. Notably, Russian finance officials have floated their own ruble-backed stablecoin following wallet freezes linked to the sanctioned exchange Garantex. But analysts remain skeptical about a dramatic shift. A recent Citigroup report noted that, despite increasing regional efforts, most stablecoin supply will likely remain dollar-based, with non-US countries more focused on launching central bank digital currencies . Still, the UAE’s effort is different. It’s not just a political statement—it’s a coordinated strategy by institutions with real infrastructure, capital, and vision. The post Abu Dhabi’s Financial Giants to Launch Dirham-Pegged Stablecoin appeared first on TheCoinrise.com .

Source: The Coin Rise