UAE FAB Bank and sovereign wealth fund ADQ to launch AED stablecoin

As stablecoins take center stage, banks globally and in the UAE are embracing the digital assets era. UAE First Abu Dhabi Bank (FAB), IHC, and ADQ sovereign investor will be launching a new AED-backed stablecoin regulated by the UAE Central Bank.

The AED stablecoin will be issued by FAB. The trio aim to make payments locally and internationally easier. The AED stablecoin is designed to enable payment for the world where identity, governance and value flow freely, securely, and verifiably.

As per the press release, the AED stablecoin will also support emerging digital use cases such as machine-to-machine and AI.

Hana Al Rostamani, Group Chief Executive Officer of FAB, also stated that the new stablecoins will make a significant impact across industries and could revolutionize the use of trusted blockchain payments for UAE consumers and businesses.

The FAB AED stablecoin will be built on ADI Blockchain

The new stablecoin will operate on the ADI blockchain, developed in the UAE by the ADI Foundation. The network will provide a compliant distribution network for blockchain payments.

ADI Foundation connects established financial systems with next-generation blockchain technology to create real-world impact, allowing citizens of emerging countries to compete and operate on a global scale, which previously would have been impossible. ADI Foundation already has strategic partnerships with governments in over 20 countries.

The ADI Foundation is a non-profit organization dedicated to helping governments connect with trusted partners to advance digital transformation and blockchain adoption worldwide. Rooted in Abu Dhabi, the Foundation leverages its $120 million fund and a global network of partners to deliver blockchain solutions that enhance trust, transparency, and efficiency in key sectors such as healthcare, financial systems, sustainability, and governance.

Guillaume de La Tour, CEO of ADI Foundation, commented, “This stablecoin marks a pivotal milestone in the UAE’s journey toward a more inclusive and digitally empowered economy. By leveraging the ADI blockchain, we are enabling secure, transparent, and efficient transactions at scale — built on technology developed right here in the UAE.”‍

‍H.E. Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, noted that the launch of the stablecoin is a pivotal step in their commitment to strengthening the UAE’s digital infrastructure.

He believes stablecoins will provide a solution that is secure, efficient, and scalable, while creating new opportunities for growth and value creation.

Syed Basar Shueb, CEO of IHC, added, “This new stablecoin represents a major breakthrough in the development of digital currencies. By bringing IHC’s expertise in blockchain and fintech, we look forward to working with our partners to explore its vast potential and drive innovation in the UAE.”‍

UAE has already regulated the AE Coin stablecoin

This is not the first AED stablecoin that will be launched in the UAE. Already, the UAE Central Bank has licensed the AE Coin developed by MBANK. In addition, Tether is also in the process of launching an AED stablecoin in the UAE.

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