In a landmark development for regulated digital finance, the Dirham-Backed Stablecoin DDSC has officially launched and gone live on the ADI Chain, backed 1:1 by reserves of the United Arab Emirates (UAE) dirham. The launch follows formal approval and licensing by the Central Bank of the UAE (CBUAE), marking a significant milestone in the nation’s digital asset strategy and signalling robust institutional adoption of blockchain-based settlement systems.
The DDSC project is a collaborative initiative led by the International Holding Company (IHC), Sirius International Holding, and First Abu Dhabi Bank (FAB). IHC, one of the world’s largest investment firms, and FAB, the UAE’s largest bank by assets and market share, jointly spearheaded the initiative with Sirius bringing technology deployment and institutional integration expertise to the table.
What Is DDSC and How It Works
DDSC is a stablecoin fully backed on a 1:1 basis by UAE dirham reserves held under strict custody arrangements. Unlike many crypto assets that float freely in markets, DDSC is engineered to function as digital cash — a programmable, compliant, and transparent instrument for payments, settlement and treasury operations within regulated networks.
Crucially, the stablecoin operates exclusively on the ADI Chain, an institutional-grade Layer-2 blockchain designed by the ADI Foundation to support regulated financial and capital markets infrastructure at scale. ADI Chain is structured to satisfy stringent compliance, transparency, and security requirements while offering the efficiency and speed characteristic of blockchain technology.
Regulatory Approval and Institutional Support
The UAE Central Bank’s explicit licensing of DDSC underscores the country’s proactive approach to integrating digital assets into its broader financial ecosystem. This approval ensures that the stablecoin meets strict regulatory standards around reserve backing, governance, operational integrity, and transparency — key factors for building institutional trust.
FAB plays a central role as the banking partner, not only providing reserve custody for the dirham backing but also leveraging its existing banking infrastructure to support distribution and adoption across its network of more than 4 million customers in over 20 markets.
Why DDSC Matters
The launch of DDSC represents more than just another digital token — it positions the UAE at the forefront of regulated blockchain infrastructure globally. Stablecoins have grown into a $40+ trillion segment of the digital economy, increasingly used for payments, settlement, and liquidity management in both traditional and decentralized finance contexts.
By anchoring a stablecoin to the UAE dirham and clearing it through a fully compliant blockchain, the initiative bridges the gap between traditional financial systems and emerging digital rails. It enables faster settlement, programmable contracts, and potential future applications like cross-border remittances, supply-chain finance, and even machine-to-machine payments — all with the regulatory safeguards critical for institutional participation.
Technology and Future Outlook
ADI Chain’s architecture emphasizes compliance, efficiency, and security. Built atop advanced Layer-2 protocols and supported by audits and regulatory frameworks suited for institutional use, it is designed to host not only stablecoins like DDSC but also other tokenized real-world assets.
Looking ahead, stakeholders envision a broader sandbox where additional Gulf Cooperation Council (GCC) currencies could be tokenized on ADI Chain, fostering interoperable settlement rails across regions — potentially connecting the Middle East with Africa and Asia for compliant cross-border finance.
