Stablecoins are moving deeper into regulated financial systems, with central banks and institutions increasingly formalising their role within mainstream digital finance infrastructure.
The Central Bank of the UAE (CBUAE) has approved the launch of DDSC, a UAE dirham-backed stablecoin, marking a major step forward in the country’s regulated digital finance framework.
The approval allows DDSC to enter its operational phase on ADI Chain, an institutional Layer-2 blockchain developed by the Abu Dhabi-based ADI Foundation. The move reinforces the UAE’s position as a global leader in compliant digital assets and financial innovation.
From announcement to live operation
DDSC was first announced in April 2025 as a joint stablecoin initiative between International Holding Company (IHC) and First Abu Dhabi Bank (FAB). With regulatory clearance now in place, the project moves from concept to live deployment, with Sirius International Holding, IHC’s technology-focused subsidiary, joining the initiative to support implementation, integration and institutional adoption.
The stablecoin is designed as a regulated digital financial instrument, built specifically for institutional, enterprise and government-led use cases rather than retail speculation.
Institutional use cases and applications
DDSC is positioned to support a wide range of high-value and mission-critical financial activities within a trusted regulatory environment, including:
- Payments and collections
- Treasury and high-value settlement operations
- Trade finance and supply-chain transactions
- Programmable financial services for regulated entities
FAB customers are expected to access DDSC through multiple approved platforms, enabling seamless integration into existing banking and enterprise workflows while maintaining strict compliance, transparency and operational controls.
Built on ADI Chain for regulated finance
DDSC will operate on ADI Chain, a blockchain infrastructure purpose-built for governance, scalability and institutional performance. The platform is designed to bridge traditional financial systems with blockchain-enabled digital asset ecosystems, allowing regulated entities to participate without compromising oversight, security or compliance requirements.
By aligning blockchain technology with supervisory frameworks, ADI Chain supports the controlled adoption of digital assets across the financial sector.
Strengthening the UAE’s digital finance leadership
The launch of DDSC reflects the growing maturity of stablecoins as a core component of modern financial infrastructure. With direct regulatory approval and a sovereign-aligned deployment model, the initiative demonstrates how digital currencies can be integrated responsibly into the mainstream financial system.
Industry leaders involved in the project highlighted that DDSC is intended to modernise payments, settlement and treasury operations, while enabling secure, automated value transfer as digital finance evolves.
With DDSC now approved to go live, the UAE takes another substantive step toward aligning institutional finance with the next phase of the digital-asset economy — underpinned by clear regulation, national infrastructure and long-term financial stability.
Key takeaways
- Stablecoins are evolving into regulated financial instruments
- Central banks are enabling institutional digital asset adoption
- Blockchain is being integrated with traditional financial systems
- Use cases extend beyond retail to enterprise and government operations
- The UAE continues to lead in regulated digital finance innovation
