Industry executives see rising interest in dirham-backed digital currencies as the UAE strengthens its position as a global hub for digital finance
Demand for UAE dirham-backed stablecoins is expected to increase as businesses seek faster and more efficient cross-border payment solutions, according to executives from Standard Chartered and Zodia Markets.
“There are quite a few initiatives here in the UAE around dirham stablecoins. We’re pretty confident that we’re going to see demand for dirham stablecoins, and no doubt we’ll see some start to appear across the wider GCC and the region,” said Nick Philpott, Interim CEO of Zodia Markets, during a virtual media roundtable hosted by Standard Chartered.
The comments come as the UAE continues to strengthen its position as a regional hub for regulated digital assets. Last month, IHC executed a Dh110 million ($30 million) institutional transaction using the DDSC stablecoin on ADI Chain, one of the largest stablecoin transactions in the region, highlighting growing institutional adoption of blockchain-based settlement infrastructure in the UAE.
The transaction followed the Central Bank of the UAE’s approval of the dirham-backed DDSC stablecoin, which was developed by IHC, First Abu Dhabi Bank (FAB) and Sirius International Holding to support payments, trade settlement and treasury operations.
Speaking during the discussion, René Michau, Global Head of Digital Assets at Standard Chartered, said growing interest in non-US dollar stablecoins reflects the multi-currency nature of global trade and increasing demand for more efficient payment rails.
“Global trade and payments are multi-currency by nature, creating opportunities for local-currency stablecoins to emerge where there is strong economic utility,” Michau said.
The roundtable was held to discuss Standard Chartered’s latest report, Beyond Concentration: Where Non-USD Stablecoins Can Scale, which argues that while dollar-backed stablecoins account for more than 98 per cent of market capitalisation, growing trade flows across Asia, the Middle East and Africa are creating opportunities for local-currency alternatives.
According to Michau, geopolitical fragmentation, evolving regulation and the rapid growth of digital trade are creating favourable conditions for non-dollar stablecoins in several markets.
Philpott added that markets witnessed record dollar stablecoin volumes following recent geopolitical tensions, highlighting how businesses increasingly turn to alternative settlement rails during periods of uncertainty.
“In times of crisis, people start to investigate alternatives,” he said.
The panel also discussed the potential role of gold-backed digital assets in trade and wealth preservation. While speakers noted that tokenised gold offers promising opportunities, they said wider adoption would depend on stronger liquidity, custody arrangements and institutional-grade infrastructure.
Industry executives agreed that regulatory clarity, market liquidity and robust infrastructure will be critical in supporting the next phase of stablecoin adoption across the UAE and the wider region.
