News Digest: Abu Dhabi Deepens Crypto Push with New Dirham-Backed Stablecoin
April 29, 2025
News Digest:
Abu Dhabi is ramping up its commitment to the cryptocurrency sector as three major institutions — sovereign wealth fund ADQ, conglomerate IHC, and First Abu Dhabi Bank (FAB) — announced plans to launch a new dirham-backed stablecoin. In a joint statement released Monday, the companies said the stablecoin would be fully regulated by the UAE’s central bank and issued by FAB, pending regulatory approval.
The stablecoin aims to serve as a trusted digital currency for citizens, businesses, and institutions across a variety of everyday transactions. Stablecoins, pegged to traditional currencies like the U.S. dollar, have gained popularity both as a medium of exchange and a tool for crypto traders seeking alternatives to conventional banking.
This move aligns with the UAE’s broader ambitions to establish itself as a global hub for digital assets. The country has rapidly embraced cryptocurrency payments, significantly boosting adoption rates and transaction volumes.
The announcement follows other major developments in the UAE’s crypto landscape, including the December launch of AE Coin — the nation’s first dirham-backed stablecoin — and MGX’s $2 billion investment in Binance last month, one of the largest deals in crypto history. Abu Dhabi’s latest initiative underscores its aggressive strategy to lead in the evolving digital economy.
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