The International Holding Company (IHC) executed a 110 million dirham ($30 million) transaction using the DDSC stablecoin on ADI Chain. The company described the transfer as one of the largest publicly disclosed stablecoin transactions conducted in the United Arab Emirates.
The transaction follows the UAE Central Bank’s recent approval for the dirham-backed stablecoin ecosystem launched by IHC, First Abu Dhabi Bank and Sirius International Holding.
DDSC runs on ADI Chain, a layer-2 blockchain developed by ADI Foundation. According to the announcement, the system is designed for institutional use, including cross-border payments, treasury transactions and trade settlement.
The IHC said the transaction was intended to demonstrate that DDSC and ADI Chain can support financial activities on an institutional scale, with future plans focused on payment corridors connecting the Middle East to global markets.
First Abu Dhabi Bank is the largest bank in the UAE by assets, while IHC is one of the country’s largest listed investment companies.
The announcement comes at a time when financial institutions and digital asset companies in the UAE are expanding regulated stablecoin infrastructure. In January, Universal Digital launched USDU, which it described as the first US dollar-backed stablecoin to be registered by the UAE Central Bank under the country’s Payment Token Services Regulation framework.
Crypto companies are expanding regulated operations in the UAE
The UAE has continued to attract global crypto exchanges and financial institutions seeking regulated access to the regional market, as the country expands licensed digital asset services related to payments, custody and institutional trading.
Earlier this month, Crypto.com received a Stored Value Facilities license from the central bank, allowing residents to pay Dubai government fees using cryptocurrencies through the company’s platform. The approval allows the company to support payments under the Dubai government’s broader cashless payments strategy.
Crypto.com secures SVF license. Source: Crypto.com
Meanwhile, BNY partnered with Finstreet and ADI Foundation in May to develop institutional digital asset custody services in Abu Dhabi, with initial support for Bitcoin (BTC) and Ether (ETH) and plans to later expand into stablecoins and tokenized assets.
On Thursday, Kraken said it has received preliminary approval from Dubai’s VARA regulator as part of its planned expansion in the UAE. The company said the approval would support UAE dirham financing, margin trading and over-the-counter trading, along with institutional services through Kraken Prime.