Stablecoin First Abu Dhabi Bank

Chronicle

2025: Stablecoin Launch

On April 29, 2025, it became known that the UAE would have its own stablecoin, tied to the national currency - dirham. The project involves the UAE Sovereign Wealth Fund (ADQ), commercial bank First Abu Dhabi Bank (FAB) and Emirati investment company IHC (International Holding Company).

According to Bloomberg, the stablecoin will be produced by First Abu Dhabi Bank and fully regulated by the UAE Central Bank. The initiative is expected to accelerate the country's efforts to adopt digital currencies and simplify payments. In particular, it is argued that stablecoin will be used as a "reliable digital currency" in a wide range of everyday scenarios. In addition, stablecoin is planned to be introduced "into new technological projects using artificial intelligence and machine-to-machine interaction."

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Фото: TronWeekly

The new stablecoin will use blockchain technology developed by Abu Dhabi-based technology company ADI Foundation. The volume of investments and other details as of the end of April 2025 were not disclosed.

Digital currency will have a significant impact on all industries and could revolutionize the use of blockchain-based payment means in the consumer and commercial sectors of the UAE, says Hana Al Rostamani, CEO of First Abu Dhabi Bank.

By tying to other assets, stablecoins have a lower propensity for volatility than cryptocurrencies. This applies mainly to stablecoins backed by fiat currency or non-foreign exchange assets of the real world. As a result, stablecoins are increasingly used in the crypto industry - both in the centralized and decentralized segment.^[1]

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