Powerful collaboration between three major Abu Dhabi institutions, including the Emirate’s sovereign wealth fund, has paved the way for a new dirham-pegged stablecoin. The Abu Dhabi Investment Council (ADQ), First Abu Dhabi Bank (FAB), and the International Holding Company (IHC) are joining forces to launch this stablecoin, which is awaiting regulatory approval.

Once released, the stablecoin will be controlled by the UAE's central bank and entirely backed by the dirham. Additionally, it aims to support a variety of use cases, including machine-to-machine transactions and applications in artificial intelligence.

The "cAD" stablecoin is tied to the UAE dirham and is intended to serve as a dependable on-chain settlement tool. Its goal is to reduce friction in digital transactions, allowing for seamless and transparent payments across a wide range of financial applications. What sets this initiative apart is that it’s not just a tech experiment — it’s backed by some of the most influential players in the region’s financial ecosystem, offering both trust and scale.

FABRIC has already conducted a pilot transaction using the cAD token on the public Ethereum blockchain, showing that the infrastructure is not only theoretical but already functioning in the real world. With regulatory oversight from ADGM, the stablecoin aims to blend innovation with compliance, striking a balance between the rapidly evolving crypto world and traditional finance.

This move strengthens Abu Dhabi's position as a global digital asset center and reflects increased institutional interest in blockchain-powered finance. It also signals a broader shift where regulated, bank-issued stablecoins could soon become a staple of global financial systems, offering the benefits of crypto without the volatility. As the world watches this development unfold, the collaboration could set a new standard for digital money issued and managed by credible institutions.