Shariah-Compliant PUSD Stablecoin Deploys on ADI Chain

Iris Coleman Apr 23, 2026 03:18

PUSD stablecoin, backed by Gulf currencies, integrates with ADI Chain, targeting the $3T Islamic finance market.

Shariah-Compliant PUSD Stablecoin Deploys on ADI Chain

Palm Azgar Finance’s PUSD, a Shariah-compliant stablecoin backed by Gulf currencies, has been deployed on ADI Chain, a Layer 2 network designed for institutional settlements in the Middle East. This move positions PUSD to tap into the $3 trillion Islamic finance market, further expanding its reach across the global financial system.

With $2.3 billion in circulation, PUSD is fully backed 1:1 by reserves in Saudi riyals and UAE dirhams, both pegged to the US dollar. The stablecoin is already supported on networks like Ethereum, BNB Chain, Solana, and Tron. Its integration with ADI Chain adds a new layer of utility, particularly for institutions seeking compliant settlement solutions in the region.

ADI Chain, operated under a regulatory framework established by the UAE’s Central Bank, is already home to a dirham-backed stablecoin issued by prominent Abu Dhabi entities, including International Holding Company and First Abu Dhabi Bank. The addition of PUSD gives institutions the option to settle transactions using either a dollar-linked or dirham-denominated token, enhancing flexibility for cross-border settlements in the Gulf, Middle East, and Africa.

Transactions on ADI Chain utilize its native token for fees, emphasizing the network’s institutional focus. PUSD, specifically designed for corporate treasuries, exchanges, and payment processors, is expected to play a key role in modernizing financial operations while adhering to Islamic principles.

UAE’s Growing Stablecoin Ecosystem

The UAE continues to solidify its position as a leader in regulated digital asset innovation. Authorities such as the Central Bank of the UAE and Abu Dhabi Global Market (ADGM) have implemented comprehensive frameworks for stablecoins and virtual asset providers. Recent initiatives include the testing of a dirham-pegged consumer payment token by UAE telecom giant e& and Al Maryah Community Bank, as well as RAKBank’s in-principle approval to issue a fully backed dirham-backed stablecoin.

In addition to dirham-denominated tokens, the UAE is advancing dollar-linked stablecoins under local regulations. For example, Universal Digital’s USDU became the first US dollar-backed stablecoin approved for payment use within the UAE’s Payment Token Services Regulation framework earlier this year. Other notable approvals include Tether (USDT), Ripple USD, and Circle’s offerings, which have been authorized to operate within ADGM’s financial jurisdiction.

The deployment of PUSD on ADI Chain underscores the UAE’s strategy of integrating compliant digital assets into its financial systems, aiming to bridge traditional markets with blockchain-based solutions. With Islamic finance exceeding $3 trillion globally, this move could pave the way for broader adoption of blockchain technology in markets seeking compliance with Shariah law.

As the UAE continues to refine its regulatory environment and attract high-profile projects, it’s becoming increasingly clear that the region is positioning itself as a global hub for regulated digital finance.

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