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Al Etihad
4 days ago
- Business
- Al Etihad
UAE becoming a global leader in stablecoin adoption, regulation and bank integration
1 June 2025 23:54 MAYS IBRAHIM (ABU DHABI)The UAE is establishing itself as a global leader in stablecoin innovation and digital finance, according to a new report by PwC Middle highlights the UAE's rapid adoption of digital assets, regulatory leadership, and the growing momentum among local banks and institutions to integrate stablecoins into their $34 billion in digital asset flows in the year ending June 2024, the UAE has become the third-largest market for digital assets in the region, trailing only Turkiye and Saudi Arabia. This surge is powered by strong interest from both institutional and professional investors, who together account for over 90% of regional transaction value, the report showed. Regulatory Blueprint for the Future The report pointed out that the Central Bank of the UAE (CBUAE) has set a regional benchmark with the release of its Payment Token Services Regulation, establishing a comprehensive framework governing the issuance, distribution and custody of stablecoins. The regulation mandates that payment tokens be fully backed 1:1 by reserves in UAE dirhams or other CBUAE-approved fiat currencies. It also requires licensing for all virtual asset service providers (VASPs) and enforces strict capital, risk management, cybersecurity and consumer protection regulatory clarity offers the UAE 'an early-mover advantage in positioning itself as a market leader', said the CBUAE's Payment Token Services Regulation, together with licensing frameworks from Dubai's VARA, Abu Dhabi Global Market (ADGM), and the Dubai International Financial Centre (DIFC), position the UAE as the 'leading jurisdiction for the development and adoption of payment tokens, dirham-denominated ones.' Banks Join the Fold Several leading banks in the region have already begun exploring payment token projects as a way to enhance their competitiveness in international markets and appeal to younger, technologically mature consumers, according to the report. 'A dirham-denominated payment token favours the UAE economy by strengthening the position of the UAE dirham in international markets, potentially reducing currency exchange costs, and supporting the nation's digital economy initiatives.'Embracing these payment tokens could empower financial institutions to reduce cross-border transaction costs and improve liquidity and treasury management, the report added. It also noted a particularly strong case for stablecoin use in remittances, given GCC countries' large expatriate population, and in trade finance, as the region strengthens its position as a global trade hub. 'There is general recognition among financial institutions and corporates in the MENA region, and solid evidence that stablecoins will play a significant role in the future of finance, leading to increased investment and experimentation in this technology both regionally and globally,' it stated.
Time of India
29-04-2025
- Business
- Time of India
AE Coin set to transform UAE's financial landscape with Dirham-backed stablecoin
What is AE Coin? Significance of AE Coin Live Events Collaborative effort Looking ahead (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The United Arab Emirates (UAE) is poised to revolutionize its financial landscape with the imminent launch of AE Coin , the nation's first fully regulated, dirham-backed stablecoin . This initiative aligns with the UAE 's broader digital transformation strategy, aiming to enhance financial inclusion , streamline transactions, and position the country as a leader in the digital Coin is a stablecoin pegged 1:1 to the UAE Dirham (AED), ensuring price stability and reducing the volatility commonly associated with cryptocurrencies. Fully backed by reserves held within the UAE, AE Coin operates under the Central Bank of the UAE's (CBUAE) Payment Token Services Regulation , which mandates stringent reserve, security, and transparency financial inclusion: AE Coin aims to provide a secure and efficient digital payment solution, particularly benefiting the UAE's substantial expatriate community by facilitating low-cost, instantaneous the digital economy: By integrating blockchain technology into its financial infrastructure, the UAE seeks to attract global investment and talent, fostering innovation across various sectors, including finance, trade, and leadership: The UAE's proactive approach in establishing a clear regulatory framework for digital assets positions it as a forward-thinking nation committed to embracing technological advancements while ensuring financial stability and consumer Read: Is the memecoin mania affecting the credibility and future of crypto? The development and issuance of AE Coin involves a 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 AE Coin prepares for its official launch, it symbolizes a significant step towards the UAE's vision of a diversified, digitally-driven economy. By embracing blockchain technology and introducing a regulated stablecoin, the UAE is setting a precedent for other nations aiming to modernize their financial systems and promote inclusive economic growth.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
