International Holding Company, Sirius International Holding and First Abu Dhabi Bank have announced that the UAE Central Bank has granted approval for the dirham-backed stablecoin, DDSC, to go live.
IHC and FAB first announced the stablecoin initiative last April to ease payment solutions. It will now enter its operational phase in which Sirius, an IHC subsidiary, joins the project to support its introduction, integration and adoption.
“DDSC marks a defining milestone in the UAE’s digital finance journey,” IHC chief executive Syed Basar Shueb said in a statement.
The DDSC is to operate on the ADI chain, which is designed to bridge traditional finance systems and blockchain-enabled digital asset ecosystems. The companies said this strategy will allow regulated companies to take part without compromising on security or oversight.
The ADI blockchain has been developed in the UAE by the ADI Foundation, which will provide a compliant distribution network for blockchain payments. The ADI Foundation has strategic partnerships with governments in more than 20 countries.
“With DDSC now live, we are entering a new phase of regulated digital finance,” said Ajay Hans Raj Bhatia, group chief executive of Sirius.
The companies said DDSC is set to support high-value applications with a regulatory framework that includes payment and collections, settlement and treasury operations, trade and supply-chain flows, and financial services for regulated entities.
Stablecoins − which are pegged to a fiat currency − tend to be less volatile when compared to cryptocurrencies such as Bitcoin. They are tied to a currency, liquid reserves including government treasuries, or commodities such as precious metals.
The UAE Central Bank began implementing its digital currency strategy, Digital Dirham, in March 2023. Its regulation on stablecoins in 2024 indicated that it was to establish a clear operational framework for cryptocurrencies when implemented.
“This milestone underscores that stablecoins can be integrated responsibly into the financial system when built to meet rigorous regulatory and risk requirements,” said Futoon Al Mazrouei, group head of personal business, wealth and privileged client banking group at FAB.
