UAE central bank approves dirham-backed stablecoin 'DDSC'

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UAE central bank approves dirham-backed stablecoin ‘DDSC’ on ADI chain

February 12, 2026

ABU DHABI,— The Central Bank of the United Arab Emirates has approved the dirham-backed stablecoin DDSC (Dirham‑Denominated Stable Coin) for live operation, officials said Wednesday.

IHC, Sirius International Holding, and First Abu Dhabi Bank (FAB) announced the approval, marking a key milestone in the UAE’s regulated digital finance landscape.

DDSC is a stablecoin, meaning its value is pegged one-to-one with the UAE dirham. Each token is fully backed by an equivalent amount of dirhams held in reserve.

This design helps maintain a stable value instead of the large price swings seen in other cryptocurrencies.

The token will run on ADI Chain, an institutional Layer-2 blockchain developed by the Abu Dhabi-based ADI Foundation.

ADI Chain is designed to connect traditional financial systems with blockchain-based digital asset platforms while ensuring regulatory compliance and security for institutional users.

The project was first announced in April 2025 by IHC and FAB. Sirius International Holding, a technology-focused subsidiary of IHC, has now joined the initiative to support deployment, integration, and adoption by institutional clients.

DDSC is intended for regulated institutional and government use. It is designed to support applications such as payments and collections, high-value settlement and treasury operations, trade and supply-chain finance, and programmable financial services for regulated entities.

FAB customers will be able to access DDSC through multiple approved platforms. According to the companies, the token will operate with transparency, compliance, and operational integrity, meeting the standards required for institutional finance.

Syed Basar Shueb, CEO of IHC, said DDSC represents a defining milestone in the UAE’s digital finance journey. He explained that the token is designed to modernize payments, settlement, and treasury workflows while enabling secure automated transfers, including future machine-to-machine transactions and trade between AI agents, Emirates News Agency reported.

Futoon Hamdan AlMazrouei, Group Head of Personal, Business, Wealth, and Privileged Client Banking at FAB, said the launch shows that stablecoins can be safely integrated into financial systems if they meet strict regulatory and risk requirements.

She added that DDSC combines regulatory oversight with blockchain infrastructure to provide secure, scalable solutions for institutional and government clients.

Ajay Hans Raj Bhatia, Group CEO of Sirius International Holding, said the live launch moves the UAE into a new phase of regulated digital finance.

He highlighted Sirius’s role in enabling adoption and real-world institutional applications through ADI Chain’s blockchain infrastructure and the UAE’s regulatory framework.

Officials said the launch of DDSC strengthens the UAE’s position as a leader in regulated digital finance and highlights the growing role of stablecoins in modern financial infrastructure.

With approval to go live, DDSC has entered its operational phase, advancing the integration of institutional finance with the digital asset economy.

(With files from WAM)