UAE-backed Stablecoin Processes $30 Million Institutional Transaction
BITmarkets Team
May 24, 2026
The transaction follows recent approval from the UAE central bank for the dirham-backed stablecoin ecosystem developed by IHC, First Abu Dhabi Bank and Sirius International Holding. DDSC operates on ADI Chain, a layer-2 blockchain created by the ADI Foundation. According to the announcement, the infrastructure is designed for institutional applications such as cross-border payments, treasury management and trade settlement.
IHC stated that the transaction was intended to demonstrate the ability of DDSC and ADI Chain to support institutional-scale financial operations, with future ambitions centered around payment corridors connecting the Middle East with global markets. First Abu Dhabi Bank remains the UAE’s largest bank by assets, while IHC is among the country’s biggest publicly listed investment firms.
UAE expands regulated stablecoin infrastructure
The announcement reflects continued growth in regulated stablecoin and digital asset infrastructure across the UAE. Earlier this year, Universal Digital introduced USDU, describing it as the first US dollar-backed stablecoin registered under the UAE central bank’s Payment Token Services Regulation framework.
The UAE has increasingly positioned itself as a hub for licensed digital asset services, attracting exchanges and financial institutions seeking regulated access to the regional market.
Crypto firms deepen institutional presence in the UAE
Several global crypto and financial companies have recently expanded regulated operations in the country.
Earlier this month, Crypto.com received a Stored Value Facilities license from the UAE central bank, allowing residents to pay Dubai government fees using cryptocurrencies through the platform.
The approval supports Dubai’s broader initiative aimed at expanding cashless government payment systems.
Meanwhile, BNY partnered with Finstreet and the ADI Foundation in May to develop institutional digital asset custody services in Abu Dhabi. Initial support includes Bitcoin and Ether, with plans to later expand into stablecoins and tokenized assets.
On Thursday, Kraken announced it had received preliminary approval from Dubai’s regulator, the Virtual Assets Regulatory Authority, as part of its expansion strategy in the UAE. The company said the approval would support UAE dirham funding, margin trading, over-the-counter services and institutional offerings through Kraken Prime.
The latest developments highlight the UAE’s growing focus on integrating regulated stablecoins and blockchain infrastructure into institutional finance and payment systems.
Sources:
https://cointelegraph.com/news/uae-backed-ddsc-stablecoin-processes-30m-institutional-transaction
