Abu Dhabi’s ADQ, FAB and IHC Announce Plans for Dirham-Backed Stablecoin

A bunch of Abu Dhabi-based establishments on Monday introduced plans to launch a stablecoin, pegged to the United Arab Emirates Dirham (AED). The group contains Abu Dhabi’s ADQ sovereign wealth fund, the First Abu Dhabi Bank (FAB), and funding agency International Holding Company (IHC). The stablecoin will likely be regulated by the Central Bank of the United Arab Emirates (CBUAE). The group goals to introduce stablecoins into UAE’s fee ecosystems.

Key Details About the Stablecoin

ADQ introduced that the upcoming stablecoin will likely be promoted as a digital foreign money that can be utilized by residents, shoppers, companies, and establishments. The stablecoin can also be anticipated to assist transactions between machines and AI fashions within the UAE.

“As we move forward towards an increasingly digital and connected economy, [the] stablecoin will provide a solution that is secure, efficient, and scalable, while creating new opportunities for growth and value creation,” stated Mohamed Hassan Alsuwaidi, ADQ MD and Group CEO, in a ready assertion.

The token will likely be supported on the ADI blockchain, developed by an Abu Dhabi-based non-profit agency referred to as the ADI Foundation. The CEO of the agency stated that as a result of the ADI blockchain is developed inside the UAE, it’ll guarantee safety and transparency inside the stablecoin ecosystem.

The finance, commerce, and commerce industries are projected to be main beneficiaries of this stablecoin. The token can also be anticipated to determine the UAE as an early adopter of stablecoins, that are being topic to laws in a number of elements of the world, together with the US.

It’s price noting that the group has but to announce a timeline of the rollout of this stablecoin.

While Dubai has secured itself as a Web3 hotspot, overseen by the devoted VARA regulatory authority, Abu Dhabi has additionally taken varied steps to strengthen its foothold within the Web3 enviornment.

Earlier in March, the Abu Dhabi Global Market (ADGM) signed an MoU with Chainlink to reinforce Web3 consciousness and discover superior blockchain use circumstances.

The Abu Dhabi-based sovereign wealth administration fund MGX bought a minority stake in Binance for $2 billion (roughly Rs. 17,403 crore), making it the primary second-party stakeholder of what is touted because the world’s largest crypto change.