On July 3, 2026, DDSC, the UAE dirham-backed stablecoin developed by International Holding Company, First Abu Dhabi Bank, and Sirius International Holding, received approval from the Central Bank of the UAE to partner with selected exchange platforms regulated by Dubai's Virtual Assets Regulatory Authority (VARA). According to reports from the source, this approval provides DDSC with a regulated route from institutional settlement into wider market access, allowing users to access, buy, and redeem the dirham-backed stablecoin through compliant exchange channels. The approval opens regulated retail, merchant and business access via CEX/DEX channels, aligning DDSC with the payment-token framework and supporting crypto adoption, on-chain payments, treasury use and stablecoin-driven DeFi integration.
Since its launch, DDSC has demonstrated significant institutional adoption, with International Holding Company reporting more than ₹150 million in transactions processed. As reported by the source, in May 2026, IHC executed an ₹110 million DDSC transaction on ADI Chain, which was presented as one of the region's largest disclosed stablecoin transactions. The stablecoin is pegged 1:1 to the UAE dirham and settled on ADI Chain, providing users with a digital asset denominated in AED instead of forcing local commerce into dollar units. This distinction is important for payment adoption because UAE shoppers, merchants, suppliers, and treasury teams all price everyday obligations in dirhams, with the stable asset in AED keeping pricing and settlement aligned while adding blockchain settlement speed, programmable payments, and 24/7 availability.
According to the source, stablecoins represent the main operating assets in digital finance, with Visa's stablecoin analytics dashboard showing more than $51 trillion in total transaction volume over the past 12 months. TRM Labs estimated stablecoins at 30% of all on-chain crypto transaction volume in 2025, carrying almost one-third of tracked crypto value movement while Bitcoin and all other altcoins together accounted for the remaining share. The UAE has demonstrated significant crypto adoption, with Chainalysis estimating more than $56 billion in crypto value received by the country during its 2024 to 2025 reporting window, up 33% year over year. Almost every blockchain activity today runs through these dollar-pegged assets, whether it's trading, treasury movement, or cross-border settlement. Global stablecoin circulation currently exceeds US$300 billion, with Africa representing one of the fastest-growing markets for adoption.
The approval applies to selected exchange platforms regulated by VARA, giving DDSC a controlled rollout through licensed channels and keeping access aligned with the UAE's compliance framework. VARA oversees virtual asset activity in and from Dubai, excluding the Dubai International Financial Centre, maintaining a public register of licensed Virtual Asset Service Providers. The Central Bank's Payment Token Services Regulation created a framework for stablecoin-related services, including issuance, conversion, custody and transfer, while VARA maintains authorization for exchange services, broker-dealer services, custody, lending and investment management. This regulatory structure ensures that DDSC connects both payment-token framework compliance and access through familiar exchange routes into the asset.
According to the source, DDSC is positioned to support everyday payments once available through selected regulated platforms, including shoppers paying merchants, businesses settling with suppliers and transfers between people. The stablecoin's AED designation provides a local advantage, as a UAE merchant accepting a dollar stablecoin still faces accounting and FX conversion work, while a dirham-backed token fits local pricing more naturally. On-chain settlement can reduce delays linked to banking hours and intermediary processing, while the UAE has spent years building a regulated digital asset environment across Abu Dhabi, Dubai and federal authorities. The approval brings the UAE dirham further into on-chain finance and gives the country's digital asset market a regulated payment token built for domestic use and future regional settlement.
