- First Abu Dhabi Bank plans to launch a Dirham stablecoin with IHC and ADQ, utilizing the ADI blockchain platform.
- The stablecoin aims to serve consumers, businesses, and institutions for domestic and international payments, including AI machine-to-machine transactions.
- The UAE faces an unusual situation where this private stablecoin may compete with the government’s upcoming digital dirham CBDC.
First Abu Dhabi Bank (FAB) has announced plans to develop a Dirham stablecoin in collaboration with investment company IHC and sovereign investor ADQ. The digital currency will be issued on the ADI blockchain platform, pending regulatory approval from the Central Bank of the UAE, according to official statements from the partners.
The partners revealed that the stablecoin is designed for use by consumers, businesses, and institutions. It will facilitate both domestic and cross-border payments, with additional functionality for AI-powered machine-to-machine transactions.
The stablecoin will operate on the ADI blockchain, developed by the non-profit ADI Foundation that launched three months ago. The foundation, established by IHC and one of its subsidiaries, recently announced a $120 million fund to support social impact businesses using blockchain technology. Guillaume de La Tour, who previously led Digital Assets at Crédit Agricole, joined as the ADI Foundation’s CEO earlier this month.
In a LinkedIn post, de La Tour stated that ADI aims to “empower governments and institutions in emerging markets with blockchain infrastructure to deliver compliant and inclusive financial services that leave no one behind.” He added that their ambitious goal is “to bring digital infrastructure to 1 billion people by 2030.”
Extensive Digital Currency Experience
The collaboration brings together significant expertise in digital currency development. De La Tour explored the digital euro while at Crédit Agricole, which developed so|cash, an open-source blockchain solution for correspondent banking.
FAB has established itself as an early adopter of blockchain banking solutions, including JP Morgan’s blockchain-based account system (formerly JPM Coin, now Kinexys Digital Payments). The UAE bank was also among the first foreign partners for China‘s digital RMB and participates in the mBridge cross-border payment system using central bank digital currencies.
Potential Competition with Official CBDC
This development creates an unusual situation as the UAE plans to launch its own central bank digital currency (CBDC), the digital dirham, later this year. This sets up potential competition between the government’s CBDC and a stablecoin issued by entities closely connected to the country’s leadership.
All three partner companies—IHC, ADQ, and FAB—are chaired by Sheikh Tahnoon bin Zayed al-Nahyan, brother of the UAE President and National Security Advisor. Sheikh Tahnoon also chairs G42, a major AI investor that recently backed Inveniam, a company connecting blockchain and AI technologies.
The stablecoin initiative combines FAB’s international payment infrastructure expertise with powerful backing from state-affiliated investors, positioning it as a potentially significant player in the digital payments landscape both domestically and internationally.
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