Paving the way for mainstream digital finance, the UAE dirham-backed stablecoin is set to fundamentally transform everyday transactions, cross-border flows, and institutional settlements alike.
In a massive leap forward for the digital economy, DDSC, the pioneering UAE dirham-backed stablecoin developed through an elite collaboration between IHC, First Abu Dhabi Bank (FAB), and Sirius International Holding, has officially received a No Objection Certificate (NOC) from the Central Bank of the UAE (CBUAE). This groundbreaking regulatory approval clears the path for DDSC to go live on selected Virtual Assets Regulatory Authority (VARA)-regulated exchange platforms, solidifying its status as a trusted cornerstone of the nation’s financial infrastructure.
The regulatory nod, granted upon the strict fulfillment of the CBUAE’s rigorous compliance and security requirements, marks another major milestone in the phased rollout of the digital asset. It paves the way for the broader, mainstream adoption of a fully regulated, UAE dirham-denominated digital payment and settlement asset across the country’s rapidly accelerating digital economy.
Proven Institutional Scalability
DDSC is strictly pegged 1:1 to the UAE dirham and currently settles on ADI Chain, the advanced institutional Layer-2 blockchain developed by the Abu Dhabi-based ADI Foundation. Since its initial launch, the stablecoin has overwhelmingly demonstrated its institutional-scale capabilities. With over AED 150 million successfully transacted to date, the platform has highlighted the remarkable scalability, deep resilience, and flawless operational readiness of its underlying ecosystem.
Subject to meeting all corresponding NOC requirements, this new approval will allow DDSC to seamlessly integrate into selected VARA-regulated exchange platforms. This highly anticipated integration makes it exceptionally easy for retail users, traders, and institutional investors to access, buy, and redeem the stablecoin through entirely compliant, legally transparent channels.
Expanding Beyond the Boardroom
While the initial focus was heavily on wholesale settlements, this strategic partnership with selected regulated platforms extends the utility of the stablecoin far beyond institutional boundaries. Once actively available through these approved exchanges, the token will reliably support everyday financial activity. Whether it involves a casual shopper paying a local merchant, a mid-sized business settling an invoice with a global supplier, or instantaneous peer-to-peer fund transfers, all transactions will be denominated in AED and settled directly on-chain rather than through slower, traditional banking systems.
For retail users and merchants operating within the UAE, this revolutionary shift provides the comfort of a familiar unit of account combined perfectly with the unmatched speed, 24/7 availability, and incredibly low costs associated with public blockchain technology.
Furthermore, as a fully regulated UAE dirham-backed asset, it provides a vital local currency alternative to the predominantly US dollar-denominated stablecoins currently dominating global digital asset markets. By enabling transactions to occur directly in UAE dirhams, the ecosystem supports far greater efficiency for domestic payments while profoundly strengthening the country’s sovereign digital financial infrastructure.
Industry Leaders Celebrate the Achievement
The successful acquisition of the NOC has been lauded by the chief architects of the initiative. Syed Basar Shueb, CEO of IHC, emphasized the strategic importance of the moment:
“This approval represents another important milestone in the development of the UAE’s regulated digital financial ecosystem. Following the successful demonstration of DDSC at institutional scale, this next phase expands its potential reach to businesses and individuals through selected VARA-regulated platforms, supporting faster, more efficient and fully regulated digital transactions in UAE dirhams. At IHC, we remain committed to advancing innovative financial infrastructure that strengthens the UAE’s position as a global leader in digital assets and next-generation financial services.”
Futoon Hamdan AlMazrouei, Group Head of Personal, Business, Wealth and Privileged Client Banking Group at FAB, echoed the sentiment, highlighting the consumer impact:
“This approval broadens access to regulated digital payments, enabling more businesses and individuals to transact securely in UAE dirhams. By providing access to DDSC through selected VARA-regulated exchange platforms, we are making regulated digital payments more accessible across the financial ecosystem. At FAB, we remain committed to delivering innovative payment solutions that support the evolving needs of our clients, while contributing to the UAE’s vision to build a globally leading digital economy.”
Adding a technological perspective, Ajay Hans Raj Bhatia, CEO of Sirius International Holding, commented:
“Receiving the Central Bank’s NOC marks an important step in bringing regulated digital payments closer to everyday users. By extending DDSC beyond institutional applications, we are creating new opportunities for businesses and consumers to transact securely, efficiently and confidently in UAE dirhams. This milestone reflects the strength of the collaboration between our partners and our shared ambition to accelerate the future of digital finance in the UAE.”
A Future Built on Trust
This monumental regulatory milestone builds directly on the highly successful launch of the token and the subsequent execution of one of the region’s largest stablecoin transactions. It dramatically reinforces the long-term, unified vision shared by IHC, FAB, and Sirius to develop a deeply trusted, rigorously regulated digital financial infrastructure originating from the UAE, designed to serve both regional and global markets. With direct access now secured through selected regulated platforms, the UAE dirham-backed stablecoin is perfectly positioned to support an ever-expanding range of payment, settlement, and financial services, significantly contributing to the dynamic evolution of the UAE’s modern digital economy.
