A consortium of three major Abu Dhabi institutions, including the sovereign wealth fund ADQ, the First Abu Dhabi Bank, and the International Holding Company, is poised to launch a new dirham-pegged stablecoin, pending regulatory approval from the UAE. The stablecoin aims to enhance the UAE's digital infrastructure and promote blockchain innovation. It will be centralized and regulated by the UAE's central bank, with its value backed by the dirham. The initiative is expected to support various technological applications, including machine-to-machine interactions and AI. Established in 2018, ADQ focuses on critical infrastructure, while the IHC is a leading investment conglomerate. FAB, the largest bank in the UAE, emerged from a merger in 2017. The move reflects a broader global trend, as other countries explore launching their own stablecoins backed by local currencies, challenging the dominance of US dollar-denominated stablecoins, which have a market capitalization exceeding $230 billion.

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