Abu Dhabi Institutions Unite to Launch Dirham-Pegged Stablecoin on ADI Blockchain

Three of Abu Dhabi’s most powerful financial institutions have joined forces to launch a dirham-backed, central bank-regulated stablecoin, marking a significant step toward the UAE’s ambition to become a global leader in blockchain innovation.

Announced on April 28, the initiative includes:

ADQ, Abu Dhabi’s sovereign wealth fund

First Abu Dhabi Bank (FAB), the UAE’s largest banking institution

International Holding Company (IHC), one of the nation’s largest conglomerates

The proposed stablecoin will be pegged to the UAE dirham and will be fully regulated by the Central Bank of the United Arab Emirates, pending final approval from regulators. Once approved, it will launch on the ADI blockchain, a decentralized infrastructure developed by the ADI Foundation, a nonprofit focused on enabling blockchain adoption across traditional financial systems and government frameworks.

Stablecoin Designed for the Next Wave of Digital Finance

According to ADQ, the project aims to strengthen the UAE’s digital financial infrastructure and place the country at the “forefront of global blockchain innovation.”

The stablecoin is envisioned to serve not only consumer and institutional use cases, but also machine-to-machine (M2M) and artificial intelligence-driven transactions — signaling a future-forward approach to programmable digital money.

Meet the Partners

ADQ, established in 2018, is a state-owned investment fund that channels capital into critical national infrastructure, supply chains, and emerging technology.

FAB, formed through the 2017 merger of First Gulf Bank and National Bank of Abu Dhabi, is the country’s leading bank by assets.

IHC, with a market capitalization exceeding $243 billion, is one of the most influential investment groups in the Middle East and is closely aligned with Abu Dhabi’s ruling elite.

The partnership between these three entities underscores the strategic importance of launching a state-supported stablecoin amid growing global interest in blockchain-based financial systems.

A Global Shift Away from USD-Denominated Stablecoins?

The announcement comes as several countries explore alternatives to the US dollar-dominated stablecoin market, which currently exceeds $230 billion in total value.

Tether (USDT) and USDC account for more than 90% of that market, but geopolitical tensions and rising calls for financial sovereignty have prompted other nations to act.

For example, a Russian finance ministry official recently proposed developing a ruble-backed stablecoin, especially after the US Treasury froze wallets linked to the sanctioned crypto exchange Garantex and associated Tether addresses.

Despite these moves, a recent April report from Citigroup predicts that USD-denominated stablecoins will continue to dominate global markets, while non-US countries focus more on central bank digital currencies (CBDCs) or regionally backed stablecoins like the one proposed in the UAE.