UAE sovereign wealth fund ADQ is part of an initiative to launch a new stablecoin backed by the emirates’ currency.
The $225 billion fund, alongside investment manager IHC and First Abu Dhabi Bank, said in a joint news release that the stablecoin will be backed by dirhams, fully regulated by the Central Bank of the United Arab Emirates and, subject to regulatory approval, issued by First Abu Dhabi.
The idea is for the dirhams-backed stablecoin to be used as a digital currency anywhere in the world, by citizens, consumers, businesses and institutions. The currency will also support emerging digital use cases such as artificial intelligence, the release said.
It will operate on the ADI blockchain — a technology developed in the UAE by the ADI Foundation. The foundation, an Abu Dhabi-based nonprofit founded by a subsidiary of IHC and focusing on blockchain infrastructure and partnerships, already has strategic partnerships with governments in more than 20 countries.
“The launch of the stablecoin marks a pivotal step in our commitment to strengthening the UAE’s digital infrastructure ecosystem,” Mohamed Hassan Alsuwaidi, managing director and group CEO of ADQ, said in the release. “As we move forward towards an increasingly digital and connected economy, the stablecoin will provide a solution that is secure, efficient and scalable, while creating new opportunities for growth and value creation."
ADQ, which was established in 2018 and focuses on critical infrastructure and global supply chains, said on its LinkedIn page that the launch of the new stablecoin “underscores our commitment to strengthening the UAE’s digital infrastructure and driving innovation and growth.”
ADQ spokespeople did not respond to a request for additional comment.
IHC has a market capitalization of $238.5 billion.
