Three major Abu Dhabi institutions, including the emirate's sovereign wealth fund, have collaborated on the launch of a new dirham-denominated stablecoin.
Abu Dhabi's sovereign wealth fund ADQ, the UAE's largest bank, First Abu Dhabi Bank (FAB), and conglomerate International Holding Company have partnered on the initiative, pending regulatory approval, the companies announced on April 28.
The stablecoin will be regulated by the UAE central bank and backed by the dirham. It will also support applications in machine-to-machine transactions and artificial intelligence.
If approved by regulators, the stablecoin will run on the ADI blockchain, developed by the ADI Foundation, a nonprofit organization dedicated to promoting blockchain adoption in financial systems and governments.