Abu Dhabi firm rolls out UAE’s first regulated dollar stablecoin

An Abu Dhabi–based company has launched what it says is the first US dollar-backed stablecoin issued under the United Arab Emirates’ regulatory framework, marking a milestone in the country’s push to position itself as a regional hub for digital assets.

The stablecoin has been registered and approved in Abu Dhabi, according to Cointelegraph, and is fully backed by US dollar reserves held with regulated financial institutions. The issuer said the token is designed to facilitate payments, settlements and blockchain-based financial services within the UAE and internationally, while complying with local oversight requirements.

The launch comes as regulators across the Gulf accelerate efforts to formalize stablecoin issuance and usage. In the UAE, authorities have taken a more permissive — but tightly supervised — approach compared with jurisdictions that continue to debate whether dollar-linked tokens should fall under banking, payments or securities rules.

The issuer said the stablecoin is intended for use by businesses, financial institutions and Web3 platforms, with potential applications including cross-border transfers, on-chain settlements and tokenized asset markets. Transactions are expected to settle faster and at lower cost than traditional correspondent-banking rails, while maintaining parity with the US dollar.

Abu Dhabi’s digital-asset framework, administered through its financial free zone, has become one of the most structured regulatory environments for crypto firms in the Middle East. The framework covers custody, exchanges, brokers and, increasingly, fiat-backed digital currencies — an area that has drawn heightened scrutiny globally following a series of high-profile collapses and de-pegging events.

Stablecoins have emerged as a key focus for regulators worldwide as their role in payments and trading infrastructure grows. In the UAE, officials have repeatedly said that clear rules around reserve backing, governance and transparency are essential for stablecoins to be used at scale without introducing systemic risk.

The Abu Dhabi launch adds to a growing list of jurisdictions seeking to domesticate stablecoin issuance rather than rely solely on offshore tokens. Industry executives say locally regulated stablecoins could play a significant role in institutional adoption, particularly in regions positioning themselves as bridges between traditional finance and blockchain-based markets.

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