The UAE is set to launch AE Coin, a fully regulated, dirham-backed stablecoin under Central Bank oversight, aimed at enhancing financial inclusion and digital payments. This initiative supports the UAE's blockchain-driven economic goals and is backed by key institutions to ensure transparency, security, and global investor confidence.

AE Coin is pegged 1:1 to the UAE Dirham (AED), ensuring price stability. It operates under the Central Bank of the UAE's (CBUAE) Payment Token Services Regulation, mandating stringent reserve, security, and transparency requirements.

AE Coin aims to provide a secure and efficient digital payment solution, benefiting the UAE's expatriate community by facilitating low-cost remittances. By integrating blockchain technology, the UAE seeks to attract global investment and foster innovation across finance, trade, and commerce. The UAE's proactive regulatory framework for digital assets positions it as a forward-thinking nation committed to technological advancements while ensuring financial stability and consumer protection.

The development and issuance of AE Coin involves collaboration between prominent UAE entities, including the Abu Dhabi sovereign wealth fund ADQ, International Holding Company (IHC), and First Abu Dhabi Bank (FAB). This partnership underscores the nation's commitment to fostering a robust and innovative digital financial ecosystem.

ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC) plan to launch a stablecoin pegged to the UAE Dirham (AED), regulated by the Central Bank of the United Arab Emirates (CBUAE). The stablecoin will be promoted as a digital currency for citizens, consumers, businesses, and institutions, supporting transactions between machines and AI models in the UAE.

Mohamed Hassan Alsuwaidi, ADQ MD and Group CEO, stated that the stablecoin will provide a secure, efficient, and scalable solution, creating new opportunities for growth and value creation. The token will be supported on the ADI blockchain, developed by the Abu Dhabi-based non-profit ADI Foundation, ensuring security and transparency.

The finance, commerce, and trade industries are expected to benefit significantly from this stablecoin, establishing the UAE as an early adopter. Abu Dhabi has taken steps to strengthen its foothold in the Web3 arena, with ADGM signing an MoU with Chainlink to enhance Web3 awareness and explore advanced blockchain use cases. Additionally, MGX, an Abu Dhabi-based sovereign wealth management fund, purchased a minority stake in Binance for $2 billion.

As AE Coin prepares for its official launch, it symbolizes a significant step towards the UAE's vision of a diversified, digitally-driven economy, setting a precedent for other nations aiming to modernize their financial systems and promote inclusive economic growth.