UAE's first Dirham-backed stablecoin might be coming sooner than you think

AED Stablecoin LLC announced receiving in-principle approval from the Central Bank of the UAE to launch AE Coin, the country's first-ever dirham-backed stablecoin.

The approval, granted under the ‘Payment Token Services Regulation’ (Circular No. 2/2024), positions AE Coin as a major player in the UAE's growing digital economy, aligning with the UAE Digital Government Strategy 2025.

AE Coin is a fiat-backed stablecoin, fully supported by the UAE dirham, providing users with the advantages of blockchain technology combined with the stability of traditional currency.

The introduction of AE Coin aims to offer secure, seamless payment solutions while contributing to the UAE’s rapidly expanding digital economy.

As the first Central Bank-regulated digital currency in the UAE, AE Coin brings credibility and trust to the market. Its value is backed by the UAE dirham, with transparent reserves and regular audits ensuring stability and security, mitigating the typical volatility of cryptocurrencies.

AE Coin will also integrate with decentralized finance (DeFi) platforms, enabling users to participate in lending, borrowing, and earning interest without intermediaries.

The currency will leverage advanced blockchain technology with multi-layer encryption, ensuring secure and transparent transactions. It adheres to stringent security and compliance standards, further reinforcing its credibility in the digital financial ecosystem.

AE Coin’s roadmap includes enabling secure payments across e-commerce platforms, launching a mobile wallet app for on-the-go access, and expanding partnerships with merchants to promote digital currency transactions.

Ramez Rafeek, General Manager of AED Stablecoin, expressed excitement over the approval: “We are thrilled to receive the Central Bank’s approval to issue AE Coin. As the first stablecoin regulated by the Central Bank, AE Coin will revolutionize the digital currency space, offering financial freedom, unmatched stability, and enhanced security.”

AE Coin is designed to benefit both businesses and individuals by offering fast, low-cost transactions under the strict oversight of the Central Bank of the UAE.

Companies in the UAE will benefit from stable payments, improving cash flow management and reducing transaction costs, while individuals can use AE Coin for everyday transactions.

The strategy for AE Coin includes forming partnerships with financial institutions, payment gateways, and technology providers to accelerate adoption. Future plans also involve integration with decentralized applications (dApps) and listing AE Coin on major cryptocurrency exchanges, positioning it at the forefront of the UAE's digital finance revolution.