UAE Regulators Approve Stablecoins AE Coin and USDT

The Central Bank of the UAE (CBUAE) granted approval for the issuance of the stablecoin AE Coin pegged to the dirham. Additionally, the dollar-pegged stablecoin USDT received regulatory approval from the Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA).

AE Coin, a stablecoin tied to the dirham, received licensing from the CBUAE. According to Khaleej Times, this marks the first stablecoin officially permitted for use across the entire country.

The AE Coin roadmap includes partnerships with leading financial institutions, payment gateways, and technology providers in the UAE to encourage widespread adoption. The AE Coin team already announced a collaboration with Al Maryah Community Bank (Mbank), launching the AEC Wallet, which enables the use of the stablecoin.

AE Coin is expected to revolutionize the country’s digital economy, providing a fast, secure, and low-cost payment solution. Future plans include listing the coin on major exchanges and integrating it with dApps.

Separately, Tether announced that the FSRA approved the use of USDT within the ADGM free economic zone. USDT tokens issued on Ethereum, Solana, and Avalanche blockchains will now be accessible, enabling companies in ADGM to offer services involving the stablecoin.

Earlier in 2024, the UAE’s central bank established a licensing framework for stablecoins, requiring issuers to fully back tokens with dirhams (AED). However, this rule doesn’t apply to financial instruments limited to special economic zones.