In a significant step for the country’s regulated digital asset ecosystem, the Central Bank of the UAE has approved the UAE dirham-backed stablecoin, DDSC, for launch, marking a new phase in the evolution of digital finance infrastructure.

The initiative is led by IHC, Sirius International Holding, and First Abu Dhabi Bank, positioning DDSC as a compliant, institutional-grade digital financial instrument designed for government and enterprise use cases.

DDSC will operate on ADI Chain, an institutional Layer 2 blockchain developed by the Abu Dhabi-based ADI Foundation. The infrastructure is purpose-built for governance, scalability, and institutional performance. It aims to bridge traditional financial systems with blockchain-enabled digital asset ecosystems while maintaining regulatory oversight and compliance standards.

The stablecoin builds on an initiative first announced in April 2025 by IHC and FAB. With regulatory approval now secured, DDSC enters its operational phase, with Sirius International Holding supporting deployment, integration, and institutional adoption.

Designed for high-value and regulated applications, DDSC is positioned to support payments and collections, treasury and high-value settlements, trade and supply chain flows, and programmable financial services tailored for regulated entities. The stablecoin is expected to be made available to FAB customers through multiple approved platforms, reinforcing compliance, transparency, and operational integrity.

Syed Basar Shueb, CEO of IHC, said, “DDSC marks a defining milestone in the UAE’s digital finance journey. With the Central Bank’s approval and our transition into live operation, we are delivering trusted, institutional-grade infrastructure that strengthens resilience, accelerates innovation, and expands what is possible in regulated digital payments. As a UAE dirham-backed, programmable stablecoin, DDSC is designed to modernize payments, settlement, and treasury workflows, while enabling secure, automated value transfer, including future machine-to-machine transactions and trade between AI agents as the autonomous economy evolves.”

Futoon Hamdan AlMazrouei, Group Head of Personal, Business, Wealth and Privileged Client Banking Group at FAB, added, “This milestone underscores that stablecoins can be integrated responsibly into the financial system when built to meet rigorous regulatory and risk requirements. As the UAE’s global bank, FAB is enabling DDSC to seamlessly combine regulatory oversight with blockchain infrastructure, providing secure, scalable solutions that support institutional and government clients across the UAE’s evolving digital economy.”

The launch highlights the UAE’s approach to regulated digital finance, as stablecoins move closer to becoming part of the core financial infrastructure.