The UAE’s dirham-backed stablecoin DDSC has received a No Objection Certificate (NOC) from the Central Bank of the UAE (CBUAE), allowing it to move closer to public availability through selected cryptocurrency exchanges regulated by the Virtual Assets Regulatory Authority (VARA).
The approval marks a significant milestone for the digital currency, which was developed through a partnership between International Holding Company (IHC), First Abu Dhabi Bank (FAB) and Sirius International Holding. Subject to meeting the remaining conditions outlined in the NOC, DDSC will become available on selected VARA-regulated trading platforms, allowing users to buy, sell and redeem the stablecoin through regulated channels.
DDSC is fully backed by the UAE dirham on a one-to-one basis and operates on ADI Chain, an institutional Layer-2 blockchain developed by the ADI Foundation. Since its launch, the stablecoin has processed transactions exceeding Dh150 million, demonstrating its ability to handle institutional-scale digital payments.
Until now, DDSC has primarily served institutional users. The latest regulatory approval is expected to broaden its reach to businesses and individual consumers by enabling access through licensed virtual asset platforms.
Officials said the expansion could support a wide range of everyday transactions. Consumers would be able to pay merchants using the digital currency, businesses could settle invoices with suppliers, and individuals could transfer money directly to one another. All transactions would be denominated in UAE dirhams and processed on blockchain technology rather than through conventional payment systems.
Supporters of the project say the stablecoin offers a locally regulated alternative to the US dollar-backed stablecoins that currently dominate global digital asset markets. By providing a digital currency linked directly to the UAE dirham, DDSC is expected to improve efficiency in domestic payments while supporting the country’s broader digital finance strategy.
Syed Basar Shueb, Chief Executive Officer of IHC, said the latest approval represents the next stage in the stablecoin’s development following its successful use in institutional transactions.
“Following the successful demonstration of DDSC at 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,” he said.
Futoon Hamdan AlMazrouei, Group Head of Personal, Business, Wealth and Privileged Client Banking at FAB, said the approval would make regulated digital payments more accessible across the financial sector.
Ajay Hans Raj Bhatia, Chief Executive Officer of Sirius International Holding, said extending DDSC beyond institutional use would create new opportunities for businesses and consumers to complete secure and efficient transactions using the national currency.
The development reflects the UAE’s continued efforts to strengthen its position as a global hub for digital assets by building a regulated ecosystem that supports blockchain-based financial services while maintaining oversight through the country’s financial authorities.
