Financed by sovereign investor ADQ and partnering with International Holding Company (IHC), the United Arab Emirates' largest bank, First Abu Dhabi Bank (FAB), is set to introduce a digital currency, commonly known as a stablecoin.

First Abu Dhabi Bank (FAB) Announces Dirham Stablecoin in Partnership with IHC and ADQ

The First Abu Dhabi Bank (FAB) has unveiled plans to launch a Dirham-backed stablecoin in partnership with the International Holding Company (IHC) and ADQ. This digital finance initiative is poised to be a strategic pillar for regional digital payments, bridging traditional banking with blockchain technology.

The stablecoin, yet to reveal its exact launch date and structural details, is subject to regulatory approval by the Central Bank of the UAE. This regulatory oversight signifies a commitment to compliance and oversight at the highest national level.

In contrast, the UAE’s Central Bank Digital Currency (CBDC), represented by initiatives like the AE Coin, is already operational in some public services such as court fees in Abu Dhabi. The AE Coin is a Dirham-pegged stablecoin designed with government use cases in mind, emphasizing stability, regulatory compliance, and practical use in everyday transactions.

The broader regulatory framework effective since June 2025 fosters a diverse ecosystem of fiat-backed stablecoins under centralized oversight by the Central Bank. This framework supports both sovereign-aligned stablecoins like the Dirham-backed tokens from FAB/IHC/ADQ and regulated digital payment platforms enabling real estate and other transactions through compliant channels.

Guillaume de La Tour, who recently joined the ADI Foundation as its CEO, stated that ADI aims to bring digital infrastructure to 1 billion people by 2030. De La Tour previously led Digital Assets at Crédit Agricole and digital innovation.

The UAE, alongside China, is one of the founding partners of mBridge for cross-border payments using CBDC, with FAB as one of the participating banks. Furthermore, the UAE bank was one of the first foreign partners for China's central bank digital currency, the digital RMB.

ADQ, a massive sovereign investor in the UAE, is chaired by Sheikh Tahnoon bin Zayed al-Nahyan, who also chairs IHC and FAB. G42, a company chaired by the same Sheikh, is a major AI investor. Inveniam, a company recently backed by G42, bridges the blockchain and AI fields.

The ADI Foundation, a non-profit launched three months ago by IHC and one of its subsidiaries, unveiled a $120 million fund to finance social impact businesses using blockchain technology.

Later this year, the UAE will launch its own retail and wholesale CBDC, the digital dirham. FAB has been an early user of JPM Coin, now rebranded to Kinexys Digital Payments.

As the digital payment landscape evolves in the UAE, these initiatives contribute to a more varied, regulated, and interoperable ecosystem, benefiting consumers, corporates, and institutions, both domestically and for cross-border payments, as well as for AI machine-to-machine payments.

The First Abu Dhabi Bank (FAB), in partnership with IHC and ADQ, plans to launch a Dirham-backed stablecoin, integrating traditional banking with blockchain technology for regional digital payments.
The Central Bank of the UAE is responsible for regulatory approval of the new stablecoin, demonstrating a commitment to compliance and oversight at the national level.
In contrast, the UAE's Central Bank Digital Currency (CBDC), such as the AE Coin, is already operational in some public services, with emphasis on stability, regulatory compliance, and practical use in everyday transactions.
The regulatory framework effective since June 2025 encourages a diverse ecosystem of fiat-backed stablecoins and digital payment platforms within centralized oversight by the Central Bank.
Guillaume de La Tour, newly appointed CEO of ADI Foundation, aims to bring digital infrastructure to 1 billion people by 2030, having previously led Digital Assets at Crédit Agricole and digital innovation.
The UAE, along with China, is a founding partner of mBridge for cross-border payments using CBDC, with FAB participating as one of the banks, and was one of the first foreign partners for China's central bank digital currency, the digital RMB.

Financed by sovereign investor ADQ and partnering with International Holding Company (IHC), the United Arab Emirates' largest bank, First Abu Dhabi Bank (FAB), is set to introduce a digital currency, commonly known as a stablecoin.