UAE to Launch Stablecoin as USDC Supply Surges on Hedera & wider market AllinCrypto May 5, 2025
Abu Dhabi firms ADQ (Abu Dhabi Developmental Holding Company) IHC (International Holding Company, and First Abu Dhabi Bank (FAB) plan to launch a Dirham stablecoin.
The news comes as stablecoin adoption is on the rise, with total stablecoin circulation reaching $240 billion as of April 29, 2025, a new all-time high for the assets.
The Dirham-backed stablecoin will be regulated and may be adopted for usage on blockchain networks and platforms for cross-border transactions, such as Circle’s upcoming payment network, Cardano’s Midnight, and Hashgraph’s HashSphere.
Dirham-backed stablecoin to launch, supported by UAE bank
Abu Dhabi firms ADQ, FAB, and IHC plan to launch the United Arab Emirates’ first fully regulated stablecoin as digital asset adoption for stablecoins increases.
The project has officially been supported by the Central Bank of the UAE and will be a part of the region’s leap into cryptocurrency adoption via stablecoins, a movement occurring in the United States under President Trump.
In recent months, Trump’s administration has called for faster, more robust crypto adoption measures with the introduction of the STABLE Act and GENIUS Act, new regulations that will allow institutions and banks to easily adopt and serve digital asset services to customers.
Reports suggest the UAE’s stablecoin will comply with international regulators and be backed 1:1 with the region’s dirham currency (AED).
The token itself will be issued by FAB and run on the ADI blockchain, a network designed and developed by the ADI Foundation, a nonprofit aimed at helping financial systems and governments adopt crypto.
Alongside stablecoin creation, the UAE has since given money service licenses to Ripple and Circle, the issuer of the USDC stablecoin.
The licenses will allow both Ripple and Circle to operate financial services in the region as the UAE looks to expand its outreach to leading cryptocurrency firms.
Stables market cap makes new all-time highs as growth surges on Hedera and other networks
Stablecoins have been given newfound appreciation as the US comes to adopt regulated tokens as a digital dollar, aiming to utilize them as digital alternatives to the existing dollar.
Digital dollars will not only bring new liquidity but also make cross-border payments easier and quicker thanks to blockchain technology.
Part of Circle’s new payment network allows banks to use USDC as part of internal payments, allowing transactions to settle within seconds and for users to send money easily and quickly, similar to Ripple payments and RLUSD.
Over the past 7 days, the total stablecoin market cap has increased by $3.49B, pushing the total market cap to $242 billion, yet another new all-time high for stablecoin circulation.
With USDC and others surging in liquidity and usage, USDC supply on Hedera has been on the rise for the past month, up 63%+, adding $50.7M to the total supply now worth $130.8M.
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