UAE Central Bank Approves DIRM Stablecoin
The Central Bank of the United Arab Emirates has approved a DIRM-backed stablecoin on the ADI chain. This marks a significant development for regulated digital currencies and stablecoin infrastructure in the Middle East.
- The newly approved stablecoin, DDSC (Digital Dirham Stablecoin), is backed by some of the largest institutional players in the UAE, including International Holding Company (IHC), First Abu Dhabi Bank (FAB), and Sirius International Holding. FAB, the UAE's largest bank, will serve as the banking partner and custodian of the fiat reserves backing the stablecoin 1:1. - The stablecoin will operate exclusively on the ADI Chain, an institutional-grade Ethereum Layer 2 blockchain developed by the Abu Dhabi-based ADI Foundation. ADI Chain is specifically designed for regulated financial use cases, real-world asset (RWA) tokenization, and to bridge traditional financial systems with decentralized finance. - The ADI Chain is described as a blockchain infrastructure designed entirely by artificial intelligence and powered by GPU computing to support high-performance applications in finance and other sectors. The native utility token, ADI, is used for gas fees, smart contract execution, and settlement on the network. - The DDSC stablecoin is targeted at institutional and government use cases, including high-value settlement, treasury operations, and programmable financial services for regulated entities. This initiative is part of the UAE's broader Financial Infrastructure Transformation (FIT) Programme, which also includes the development of a central bank digital currency (CBDC), the "Digital Dirham". - This approval comes as the UAE solidifies its position as a global crypto hub, with the Middle East and North Africa (MENA) region ranking as the seventh-largest crypto market globally, receiving an estimated $338.7 billion in on-chain value between July 2023 and June 2024. Over 90% of crypto transaction value in the region comes from institutional-level transfers of $10,000 or more. - The UAE's regulatory framework for stablecoins, which came into effect in August 2024, mandates that AED-pegged stablecoins must be licensed by the Central Bank. These regulations require issuers to hold significant initial capital, maintain segregated reserve assets, and undergo monthly audits, while explicitly banning algorithmic stablecoins. - The infrastructure provided by the ADI Chain and the regulated DDSC stablecoin is positioned to support the growing real-world asset (RWA) tokenization market in the UAE. The on-chain value of tokenized RWAs associated with the UAE reached approximately $17 billion as of 2025, with real estate being a primary focus.
