UAE Central Bank Authorizes DDSC, First Dirham-Backed Stablecoin for Institutional Use

CBUAE Greenlights Dirham-Backed Stablecoin DDSC

The Central Bank of the UAE (CBUAE) has officially approved the launch of DDSC, the nation's first dirham-backed stablecoin. This significant development, announced on February 12, 2026, marks a pivotal step in the United Arab Emirates' journey towards a regulated digital finance landscape. The stablecoin is a collaborative effort between International Holding Company (IHC), its technology-focused subsidiary Sirius International Holding, and First Abu Dhabi Bank (FAB).

DDSC will operate on the ADI Chain, an institutional Layer-2 blockchain developed by the Abu Dhabi-based ADI Foundation. This infrastructure is purpose-built to bridge traditional financial systems with blockchain-enabled digital asset ecosystems, ensuring compliance, security, and oversight.

Strategic Objectives and Use Cases

The DDSC stablecoin is primarily designed for institutional and government-led use cases, aiming to enhance efficiency and security in various financial operations. Its introduction is expected to modernize existing systems and facilitate advanced digital transactions.

• Payments and collections
• High-value settlement and treasury operations
• Trade and supply-chain flows
• Programmable financial services for regulated entities

According to Syed Basar Shueb, CEO of IHC, 'DDSC marks a defining milestone in the UAE's digital finance journey. As a UAE dirham-backed, programmable stablecoin, DDSC is designed to modernise payments, settlement, and treasury workflows, while enabling secure, automated value transfer, including future machine-to-machine transactions and trade between AI agents as the autonomous economy evolves.'

Regulatory Framework and Institutional Adoption

The approval of DDSC follows the CBUAE's proactive efforts in establishing a robust regulatory framework for stablecoins. The Central Bank had approved regulations for licensing and overseeing stablecoin arrangements in June 2024, with the Payment Token Services Regulation (PTSR) coming into effect in July 2024. This regulatory clarity provides a foundation for integrating digital assets responsibly into the financial system.

Futoon Hamdan AlMazrouei, Group Head at FAB, emphasized the importance of this regulatory approach, stating, 'This milestone underscores that stablecoins can be integrated responsibly into the financial system when built to meet rigorous regulatory and risk requirements.' The stablecoin is anticipated to be made available to FAB customers through various approved platforms, supporting institutional and enterprise applications.

Future Outlook for Digital Finance in the UAE

The launch of DDSC signifies the UAE's commitment to becoming a leading hub for regulated blockchain and crypto-asset activities. Ajay Hans Raj Bhatia, Group CEO of Sirius International Holding, noted, 'With DDSC now live, we are entering a new phase of regulated digital finance.' This initiative is part of a broader strategy to strengthen the UAE's digital infrastructure and foster innovation in financial technology, positioning the country at the forefront of the evolving global digital economy.