UAE Launches First Regulated Stablecoin as ADI Trends Higher

The United Arab Emirates has officially launched its first regulated stablecoin, marking another step in the region’s expanding digital asset infrastructure.

According to Michaël van de Poppe, the newly introduced DDSC stablecoin is backed 1:1 by the UAE Dirham and initiated by International Holding Company (IHC), which carries a market capitalization of approximately $240 billion, alongside First Abu Dhabi Bank (FAB), which manages roughly $330 billion in assets.

The development comes as stablecoin adoption continues to accelerate globally, with the UAE positioning itself at the center of regulated on-chain finance in the Middle East.

Institutional Backing and Infrastructure

DDSC is settled on the ADI Chain, where the $ADI token functions as the gas token for transactions. The involvement of FAB is particularly notable, as the bank reportedly controls around 33% of the UAE banking market share. IHC, meanwhile, operates more than 1,300 subsidiaries, giving the initiative broad corporate reach.

Van de Poppe also highlighted potential integrations with major global payment networks. Mastercard is reportedly exploring payment integrations, while M-Pesa, serving more than 60 million users across Africa, is said to be in discussions. If realized, these connections could significantly expand real-world usage beyond domestic settlements.

Why the Stablecoin Matters

The UAE processes approximately $45 billion in remittances and $1.42 trillion in foreign trade annually. Even a small percentage of that activity moving on-chain could meaningfully increase transaction demand within the ecosystem.

If just 1% of those flows transition to blockchain rails, ADI would serve as the transaction fuel for every settlement. This dynamic helps explain the chart’s continued upward structure despite broader market uncertainty.

The stablecoin launch reflects growing institutional confidence in regulated digital dollar equivalents and underscores a broader trend: stablecoins are increasingly being positioned as financial infrastructure rather than speculative instruments.

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