In a move that’s set to shake up the region’s financial scene, three major UAE institutions — International Holding Company (IHC), ADQ, and First Abu Dhabi Bank (FAB) — have announced plans to roll out a new digital currency backed by the dirham.

The idea is simple but powerful: create a stablecoin that people can actually trust. Unlike other cryptocurrencies that swing wildly in value, this one will be tied directly to the UAE’s official currency. The Central Bank of the UAE is involved, making sure everything ticks the right legal and security boxes.

First Abu Dhabi Bank will handle issuing the coin, once final approvals are locked in. If all goes as planned, the stablecoin could make everyday payments — whether inside the UAE or across borders — faster, cheaper, and a whole lot smoother.

But the project isn’t just about payments. It’s laying the groundwork for bigger things, like smart machine-to-machine transactions and financial systems that can almost think for themselves, thanks to AI integration.

At the tech core of the operation is a private blockchain developed by ADI, a homegrown UAE platform built to combine the best of old-school banking and new-age blockchain tech. It’s a serious attempt to give people a safer, more efficient way to move money, especially in emerging economies that are often left behind by traditional banks.

Speaking about the project, Mohamed Hassan Al Suwaidi, UAE Minister of Investment and CEO of ADQ, said the new digital currency is about future-proofing the country’s financial backbone. “This stablecoin is a huge step toward creating a more connected and dynamic economy,” he said.

Syed Basar Shueb, CEO of IHC, said his company is excited to be part of the shift. “We’re proud to help drive the future of digital currencies in the UAE. Blockchain and fintech aren’t buzzwords anymore — they’re shaping real-world change.”

First Abu Dhabi Bank’s Group CEO, Hana Al Rostamani, pointed out that being involved in such a project cements the UAE’s role as a global leader in financial innovation.

With the digital economy booming and blockchain gaining more traction, this new dirham-backed stablecoin could end up being much more than just another crypto. It might just be the spark that lights the UAE’s next big leap forward in the digital era.