Abu Dhabi institutional giants team up for dirham stablecoin
Abu Dhabi's sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company are collaborating to launch a dirham-pegged stablecoin, pending regulatory approval. The stablecoin will be regulated by the UAE’s central bank and is designed to support applications in machine-to-machine communication and artificial intelligence. The initiative aims to position the UAE as a leader in global blockchain innovation and enhance its digital infrastructure. The stablecoin will operate on the ADI blockchain, developed by the ADI Foundation. The market for US dollar-denominated stablecoins has grown significantly, with a market cap exceeding $230 billion. Other countries are also exploring stablecoins backed by their own currencies, while Citigroup predicts that the majority of stablecoin supply will remain US dollar-denominated.
