The Central Bank of the United Arab Emirates (CBUAE) has given official approval for the launch of a dirham‑backed stablecoin called DDSC, marking a major milestone in the country’s drive toward regulated digital finance and blockchain‑based financial infrastructure.
What Is DDSC?
DDSC (Dirham‑Denominated Stable Coin) is a stablecoin pegged 1:1 to the UAE dirham, meaning each token is backed by an equivalent amount of UAE currency held in reserve to ensure value stability—a hallmark trait that distinguishes stablecoins from highly volatile cryptocurrencies.
Unlike speculative digital coins, DDSC is designed for practical financial use, such as payments, settlements, treasury operations, and trade finance within institutional and enterprise settings.
Regulatory Green Light
The approval by the UAE Central Bank enables DDSC to go live and enter operational deployment under a fully regulated framework, positioning it as a compliant digital financial instrument for:
- Payments and collections
- High‑value settlement and treasury operations
- Trade and supply chain finance
- Programmable financial services for regulated entities
This regulatory backing is significant: it reflects the UAE’s ongoing strategy to integrate stablecoins into real‑world financial systems while maintaining oversight, transparency, and risk controls.
Who’s Behind the Project?
The initiative was jointly developed by:
- International Holding Company (IHC) – A major UAE investment firm that initiated the project.
- First Abu Dhabi Bank (FAB) – The largest bank in the UAE, providing reserve custody and distribution support.
- Sirius International Holding – A technology arm of IHC, now supporting deployment and institutional adoption.
FAB will make DDSC available to its customers through approved platforms, bridging traditional banking services with blockchain technology.
Built on ADI Chain
DDSC will operate exclusively on the ADI Chain, an institutional‑grade Layer‑2 blockchain developed by the Abu Dhabi‑based ADI Foundation. This network serves as a scalable, compliance‑ready settlement layer designed to connect legacy financial systems with blockchain infrastructure without sacrificing regulatory oversight or security.
Why This Matters
The launch of DDSC reinforces the UAE’s leadership in regulated digital finance and underscores several broader trends:
- Embrace of stablecoins for mainstream financial roles: Stablecoins pegged to fiat currencies are increasingly seen not just as crypto assets but as tangible tools for payments and settlement.
- Regulatory clarity: With DDSC approved under the UAE’s stablecoin framework, the project signals confidence that such digital assets can operate within strict compliance standards.
- Institutional adoption: By targeting corporate and government use cases, DDSC could accelerate adoption of blockchain‑based financial services in areas like treasury management, cross‑border trade, and programmable payments.
Looking Ahead
With regulatory approval secured, DDSC has now entered its operational phase, representing a substantive step forward in aligning institutional finance with the evolving digital‑asset economy. The initiative also bolsters the UAE’s reputation as a regional hub for fintech innovation and regulated blockchain solutions.
