Three of Abu Dhabi’s leading institutions, including the Emirate’s sovereign wealth fund have partnered to introduce a new stablecoin linked to the UAE dirham. On Apr. 28, Abu Dhabi’s sovereign‐wealth fund ADQ, the UAE’s biggest lender First Abu Dhabi Bank (FAB), and the diversified International Holding Company announced they’re teaming up, pending regulatory sign-off to launch a new stablecoin.
The trio explained that the UAE Central Bank would oversee the new stablecoin and pegged to the dirham. It will also handle everything from machine-to-machine payments to AI-driven transactions. ADQ says it aims to put the UAE at the forefront of blockchain innovation worldwide, while also reinforcing the nation’s digital infrastructure.
If regulators approve, the new stablecoin will launch on the ADI blockchain, built by the ADI Foundation, a nonprofit that helps banks, governments, and other traditional institutions explore and adopt blockchain technology.
From Abu Dhabi funds to a $230B stablecoin market
Founded in 2018, ADQ is a government-owned investment fund focused on developing key infrastructure and strengthening global supply chains. On the other hand, International Holding Company (IHC) is one of the UAE’s biggest investment groups, valued at over $243 billion. It has close connections to Abu Dhabi’s ruling family and holds significant influence in the country’s business terrain.
Did you know that First Abu Dhabi Bank (FAB) became the UAE’s biggest bank after First Gulf Bank and the National Bank of Abu Dhabi teamed up in 2017? Meanwhile, other countries have also announced plans to introduce stablecoins pegged to their local currencies instead of the US dollar.
The total value of U.S. dollar-backed stablecoins crossed $230 billion in April, up 54% from a year ago. Tether and USDC dominate 90% of the market. A Finance Ministry official in Moscow suggested that Russia should launch its own stablecoin after US authorities and Tether froze wallets tied to the sanctioned Russian exchange Garantex.
