Summary
DDSC, the UAE dirham-backed stablecoin developed by IHC, First Abu Dhabi Bank (FAB), and Sirius International Holding, has received a No Objection Certificate (NOC) from the Central Bank of the UAE to go live on selected VARA-regulated exchange platforms. DDSC is pegged 1:1 to the UAE dirham and settles on ADI Chain, an institutional Layer-2 blockchain. Over Dh150 million has been transacted to date. The approval extends DDSC beyond institutional use to retail payments, enabling everyday transactions denominated in AED settled on-chain.
Key Facts
- DDSC: UAE dirham-backed stablecoin, 1:1 pegged, on ADI Chain (institutional L2)
- CBUAE NOC granted to list on selected VARA-regulated exchange platforms
- Over Dh150M ($40.8M) transacted to date at institutional scale
- Partners: IHC, First Abu Dhabi Bank (FAB), Sirius International Holding
- Enables retail use: shoppers, merchants, business-to-supplier payments in AED on-chain
- Provides local currency alternative to USD-denominated stablecoins (USDT, USDC)
- FAB: "making regulated digital payments more accessible across the financial ecosystem"
- Part of UAE's broader push to become a leading digital asset hub
- Follows Standard Chartered's DIFC USDC minting launch (July 2)
Why It Matters
DDSC's CBUAE approval marks a significant step in the Gulf region's stablecoin race. Unlike USD-denominated stablecoins that dominate global markets, DDSC offers a local currency alternative for the UAE's $400B+ economy. The move from institutional-only to retail-accessible stablecoin payments could accelerate digital payment adoption in one of the world's highest smartphone-penetration markets. With Standard Chartered launching USDC minting in DIFC and now DDSC going retail, the UAE is emerging as a global laboratory for regulated stablecoin deployment across both USD and local currency rails.