Consumers in the UAE now have easier access to DDSC, a stablecoin backed by the UAE Dirham. Developed by Abu Dhabi’s International Holding Company (IHC), First Abu Dhabi Bank (FAB), and Sirius International Holding, this digital asset has received approval to operate on several trading platforms regulated by the Virtual Assets Regulatory Authority (VARA).

Central Bank and VARA Approval

According to IHC, the stablecoin has received a No-Objection Certificate from the Central Bank of the UAE. The availability of DDSC on platforms regulated by Dubai’s Virtual Assets Regulatory Authority (VARA) facilitates easier purchasing, access, and redemption for users.

Everyday Applications

The DDSC stablecoin can be used for daily payments such as retail shopping, commercial transactions, and peer-to-peer transfers. All transactions are conducted in Dirhams and settled on the blockchain. This initiative aims to expand the use of stablecoins beyond institutional participants to the general public.

Technical Features and Backing

DDSC is pegged 1:1 to the UAE Dirham and is settled on ADI Chain, an institutional Layer 2 blockchain developed by the ADI Foundation. IHC announced that since its launch, more than AED 150 million (approximately $41 million) in transactions have been processed using DDSC.

Benefits of Stablecoins

Stablecoins generally experience less volatility than cryptocurrencies like Bitcoin because they are pegged to fiat currencies. These assets can make payments faster and more cost-effective, particularly for cross-border transactions and remittances where traditional systems can be slow and expensive.

Importance for the UAE Market

IHC and FAB initially introduced the DDSC initiative to streamline payments and bolster the UAE’s regulated digital asset infrastructure. In May, a significant transaction worth AED 110 million was completed using DDSC on the ADI Chain.

Outlook

DDSC serves as a regulated, Dirham-backed alternative to the US dollar-pegged stablecoins dominant in the global digital asset market, strengthening the UAE’s position in the development of regulated digital payment systems.