ABU DHABI, UAE: The Central Bank of the UAE (CBUAE) has granted a No Objection Certificate (NOC) to DDSC, a stablecoin pegged one-to-one with the UAE dirham, allowing the digital asset to go live on selected exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority (VARA).
The regulatory approval, issued following the fulfillment of CBUAE requirements, marks a critical milestone in the asset’s rollout. The clearance bridges the gap between federal monetary oversight and regional virtual asset licensing, transitioning DDSC from an exclusively institutional asset into a regulated payment and settlement tool for the broader digital economy. By anchoring transactions directly in UAE dirhams, the asset functions as a local alternative to the US dollar-denominated stablecoins that traditionally dominate global virtual asset markets.
Subject to meeting localized compliance and NOC requirements, the partnership with selected VARA-licensed platforms will establish compliant channels for everyday users to access, buy, and redeem the tokens. The infrastructure is designed to bypass slower conventional banking networks, enabling instant on-chain settlement for consumer-to-merchant retail payments, corporate supplier distributions, and peer-to-peer capital transfers.
“Following the successful demonstration of DDSC at an 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,” said Syed Basar Shueb, Chief Executive Officer of International Holding Company (IHC).
The stablecoin operates on the ADI Chain, an institutional-grade Layer-2 blockchain developed by the Abu Dhabi-based ADI Foundation. Prior to this commercial expansion, the digital asset proved its technological framework by processing more than 150 million dirhams ($41 million) in transactions. The volume includes a landmark 110-million-dirham institutional settlement executed in May, which represents one of the largest single regulated stablecoin transfers recorded in the Middle East.
The framework expands the utility of local currency in digital spaces without compromising financial security mechanisms. “This approval broadens access to regulated digital payments, enabling more businesses and individuals to transact securely in UAE dirhams,” said Futoon Hamdan AlMazrouei, Group Head of Personal, Business, Wealth, and Privileged Client Banking Group at First Abu Dhabi Bank (FAB). “By providing access to DDSC through selected VARA-regulated exchange platforms, we are making regulated digital payments more accessible across the financial ecosystem.”
The deployment aims to lower transaction costs and remove operational delays by leveraging sovereign blockchain infrastructure. “Receiving the Central Bank’s NOC marks an important step in bringing regulated digital payments closer to everyday users,” said Ajay Hans Raj Bhatia, CEO of Sirius International Holding. “By extending DDSC beyond institutional applications, we are creating new opportunities for businesses and consumers to transact securely, efficiently, and confidently in UAE dirhams.”
