Abu Dhabi Sovereign Fund ADQ to Collaborate with Multiple Entities to Launch Dirham Stablecoin

Abu Dhabi Sovereign Wealth Fund Announces Plan for AED-Backed Stablecoin

The Abu Dhabi sovereign wealth fund, Abu Dhabi Development Holding Company (ADQ), the largest bank in the United Arab Emirates, First Abu Dhabi Bank (FAB), and the large enterprise group International Holding Company (IHC) jointly announced on Monday their plan to launch a stablecoin pegged to the United Arab Emirates Dirham (AED), pending regulatory approval.

According to the press release, the stablecoin will be issued by FAB, with the Dirham as the backing asset and regulated by the Central Bank of the UAE. ADQ stated that its goal is to transform local and global payment and business convenience, positioning the UAE at the “forefront of global blockchain innovation,” while strengthening the country’s digital infrastructure. The stablecoin will also support applications such as machine-to-machine interactions and artificial intelligence.

If approved by regulators, the new Dirham stablecoin will operate on the ADI blockchain, which is developed by the ADI Foundation, a non-profit organization dedicated to assisting the financial system and government in adopting blockchain technology.

Established in 2018, ADQ is a sovereign wealth fund focused on critical infrastructure and global supply chains. IHC is one of the largest investment companies and conglomerates in the UAE, with a market value exceeding $243 billion, and is associated with the ruling family of Abu Dhabi, the capital of the UAE. FAB is the largest bank in the UAE, formed in 2017 through the merger of First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD).

Source: Related reports: “Tether, the issuer of Tether, plans to develop a stablecoin pegged to the UAE Dirham” and “Is there still hope for the RWA track? Dubai government department launches pilot program for ‘real estate tokenization’.”