Major Abu Dhabi Institutions Unite to Launch Dirham-Pegged Stablecoin

Jimmy Aki
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On April 28, Abu Dhabi institutions announced plans to launch a Dirham-pegged stablecoin under full regulation by the United Arab Emirates (UAE) central bank.

The initiative is part of a larger push to strengthen the country’s digital infrastructure and position the UAE as a global leader in blockchain innovation.

ADI Blockchain Will Power Consumers, Businesses, and AI Use Cases

According to a press release, the initiative is being led by ADQ, Abu Dhabi’s sovereign wealth fund, alongside First Abu Dhabi Bank (FAB) and the International Holding Company.

Together, they aim to introduce a fully compliant stablecoin that will be directly tied to the value of the UAE’s national currency, the dirham.

The UAE central bank will oversee the regulation of this dirham-pegged stablecoin, ensuring transparency, security, and widespread adoption.

However, this is not just a financial tool. It’s a technological foundation.

The Dirham-pegged stablecoin is expected to become a seamless part of daily life and is useful for retail transactions, business operations, and cross-border payments.

Beyond human use, the stablecoin will also support automated payments between machines and artificial intelligence systems.

ADI blockchain, developed by the ADI Foundation, will serve as the backbone of this system.

The blockchain is built for regulatory compliance and efficient settlement that offers a secure environment for all users, including citizens and large enterprises.

H.E. Mohamed Hassan, group CEO of ADQ, explained that this new Dirham-pegged stablecoin launch marks a major step in the country’s effort to build a strong and trusted digital ecosystem.

His words echo the country’s growing momentum in digital finance.

A recent global crypto adoption report ranked the UAE as the most crypto-focused country worldwide, with a score of 98.4, beating out Singapore and the United States.

Nearly 25.3% of UAE residents now own cryptocurrency, and user adoption has surged by 210% in just a few years.

The introduction of the Dirham-pegged stablecoin is poised to accelerate that trend.

Once regulatory approval is complete, businesses and consumers will enjoy faster, cheaper, and more secure transactions within the country’s digital economy.

$27 Million USDT Seizure Fuels Russia-Based Stablecoin Development

The UAE isn’t the only country that recognizes the strategic value of national stablecoins.

On April 16, Russia’s Finance Ministry urged the Kremlin to develop a ruble-pegged stablecoin.

According to Osman Kabaloev, a senior official at the ministry, a ruble-backed digital currency would help shield local users and businesses from global sanctions and platform restrictions.

That suggestion didn’t come out of nowhere. Just weeks earlier, stablecoin giant Tether froze $27 million worth of USDT tied to the sanctioned Russian exchange Garantex.

Foreign officials claimed that since its establishment in 2019, Garantex had processed over $96 billion in illicit transactions, prompting swift regulatory retaliation.

Meanwhile, using a parallel but more cooperative approach, Circle, the company behind USDC stablecoin, has launched its own global payments platform.

The Circle Payments Network (CPN) enables real-time, cross-border transactions using regulated stablecoins like USDC and EURC.

It represents a growing shift among regulated players toward interoperability and speed in digital finance. The broader context supports these moves.

A joint study by Artemis and Dune Analytics states that the stablecoin market is thriving.

Active wallet usage jumped over 50% in the past year alone. In 2024, stablecoin volumes hit $27.6 trillion, surpassing Visa and Mastercard combined.

As of early 2025, the total stablecoin market cap had crossed the $200 billion mark.

With nations like the UAE and Russia accelerating their stablecoin agendas, the trend is clear: state-backed digital currencies are no longer hypothetical.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.