Abu Dhabi Expands Crypto Push as three financial institutions say they will create a dirham v-backed stablecoin as the regional capital’s crypto efforts expand. The UAE’s move further along its path to becoming a global digital asset hub.

On April 28, 2025, ADQ and collaboration confirmed the details, IHC, and FAB. The UAE’s central bank will regulate and oversee the token.

Today, IHC, alongside @Adq_Official and First Abu Dhabi Bank @FABConnects, announced plans to launch a new Dirham-backed stablecoin, which will be fully regulated by the Central Bank of the UAE and issued by FAB.

The new #stablecoin will transform payments and business… pic.twitter.com/gWnVjX0LoC

— IHC (@ihc__official) April 28, 2025

Key-Takeaways:

• ADQ, IHC and FAB’s project implements the ADI blockchain to enable secure, efficient, digital transactions in the form of Abu Dhabi dirham backed stablecoin. This helps UAE to improve the region’s fintech innovation.
• Yet by emphasising the fintech element of crypto, the UAE is decrying oil dependency. The UAE wants to be a leader in digital assets and act as a counter to U.S. dollar dominance and is ahead with projects like AE Coin and investments with Binance.

Institutional Collaboration Expands Abu Dhabi’s Crypto Push

ADI Blockchain will support the dirham backed stablecoin. This technology was developed locally by the ADI Foundation.

In a bid to offer digital payment in a reliable way, Abu Dhabi is pushing for the expansion of its crypto ambitions. The design is for use of citizens, businesses and institutions in routine and digital scenarios.

It also has machine to machine and AI driven transactions. This is a sign of autonomous finance and IoT strategy in the path of future.

ADQ CEO, H.E. Mohamed Hassan Alsuwaidi said, ‘This is a pivotal step that ADQ has set out on to help develop the UAE’s digital infrastructure.’ FAB’s Group CEO Hana Al Rostamani described it as a “groundbreaking development” in blockchain payments.

It is a big innovation as it comes as Abu Dhabi expands its crypto push. If the token is issued, it will be FAB, the country’s largest lender, which is expected to claim a price in the token because it has regulatory approval.

Abu Dhabi’s Move to Push for Crypto Only Validates Its Strategic Position

This has made the UAE a global centre for digital assets. The country has installed crypto payment, early regulations and support for local crypto projects.

One key milestone was AE Coin’s launch in December 2024 as Abu Dhabi expands crypto push. The UAE was the country’s first official stablecoin in the development of digital currency.

Earlier this month, MGX shelled out $200 million for a stake in Binance. This is a strong commitment from the UAE of moving into the digital asset field.

With each initiative acting as an addition to Abu Dhabi’s digital infrastructure in its crypto push, they effectively serve as further proof that the emirate is aiming to up its crypto game. They also continue to strengthen the country as a global fintech innovation leader.

When the stablecoin project is launched, it is in the face of growing global competition for stablecoin projects. U.S. dollar–backed stablecoins have surpassed market cap of $230 billion by April 2025, up 54 percent from previous year.

About 90% of that market is under the control of Tether and USDC. The UAE follows other countries in developing national currency-backed alternatives to challenge the U.S. dollar’s dominance as Abu Dhabi expands crypto push.

Abu Dhabi Expands Crypto Push Through Technological Infrastructure

The new stablecoin has been built on top of the ADI blockchain, which is powered by the ADI Foundation, a nonprofit looking to mainstream blockchain in the space of finance as well as government. Its objective is the support of established systems in the process of going from analog to digital infrastructure.

CEO Guillaume de La Tour of the foundation showed us how the network is able to ‘secure, transparent and efficient transactions at scale.’ For economies in the process of sustainable digitization, this presents an important advantage.

The stablecoin project is dependent on a strong technological foundation, whereas Abu Dhabi expands crypto push depends on. Using a blockchain developed in the UAE demonstrates that the country is building its own in the tech world.

However, this strategy provides higher control of digital infrastructure. Additionally, it inspires local expertise and innovation around blockchain technology.

ADQ, a $225 billion entity, involves itself in the project, giving it much-needed financial strength. ADQ was established in 2018 to provide focus on infrastructure and global supply chains.

Aged over $243 billion, IHC is one of the UAE’s biggest investment firms with links to Abu Dhabi’s ruling family. In 2017, UAE’s largest bank was formed in the merger between FAB, which was established after it merged with Standard Chartered Bank in London.

This powerful consortium is a solid institutional force when Abu Dhabi expands its crypto push. That stablecoin initiative requires their backing as well.

The UAE’s economic diversification strategy is supported by the platform of the stablecoin project. Instead, the oil dependency is being reduced with knowledge based sectors such as fintech.

The initiative will bring a ‘vast opportunity’ and will also increase regional fintech looking said Syed Basar Shueb, CEO of IHC. The further roof over as Abu Dhabi expands crypto push helps strengthen a strong digital economy that draws global talent and investment.

Support of the UAE’s dirham is a strategic move to improve its percentage on the global currency scale. The UAE aspires to enlarge the role of UAE Dirham in the digital era, by creating a digital dirham to carry out foreign exchange transactions.

In contrast to a Citigroup report issued April 23 predicting the stablecoin market would largely remain on the US dollar, this move takes place. According to the report, national or central bank digital currencies would be the focus of non-US countries.

Conclusion

Abu Dhabi expands crypto push with stablecoin backed by the dirham. The strategy leading to the global digital asset space is positioned by combining institutional collaboration, technological innovation, regulatory oversight, and economic diversification to turn the UAE into a leading global player in the space of digital assets and to reshape the Middle East, and beyond finance.