The Central Bank of the UAE has approved the launch of a new UAE dirham-backed stablecoin, DDSC, spearheaded by a consortium led by International Holding Company (IHC), Sirius International Holding and First Abu Dhabi Bank (FAB)
The initiative will see DDSC fully regulated by the central bank and issued by FAB, the UAE’s largest bank, subject to final regulatory clearance. State-backed investment group ADQ is also supporting the project, underlining the strategic alignment between Abu Dhabi’s sovereign capital and the country’s digital finance ambitions.
DDSC is designed to function as a regulated, dirham-denominated digital settlement instrument, supporting domestic and cross-border payments, trade finance flows and institutional treasury operations. By anchoring the stablecoin within the existing banking system, rather than operating in parallel to it, the structure reflects the UAE’s preference for integrating digital assets into prudentially supervised frameworks.
The approval signals a further maturation of the Emirates’ digital asset strategy. Rather than relying solely on private-sector experimentation, the model places the central bank at the centre of oversight while leveraging the balance sheet strength of a systemically important financial institution.
DDSC is expected to be made available to FAB customers through multiple approved platforms, supporting institutional and enterprise use cases while maintaining high standards of compliance, transparency and operational integrity.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “FAB is proud to play our part as a founding member of this ground-breaking development, which will put the UAE at the forefront of global innovation and enable even more growth in our thriving fintech sector. The new stablecoin will make a significant impact across industries and could revolutionise the use of trusted blockchain payments for UAE consumers and businesses.”
The UAE Central Bank began implementing its digital currency strategy, the Digital Dirham, in March 2023.
