The first AED (UAE Dirham) stablecoin has been approved by the Central Bank of the UAE and is set to launch soon. In an X post, AE Coin noted that it will be the first local stablecoin to be accepted after the central bank released its payment token services framework.
As per the announcement on Khaleej Times, a local UAE newspaper, the AE Coin is expected to revolutionize the financial services landscape. It promises an instant, secure, stable, innovative, low-cost, and efficient payment experience that will reshape the future of the digital economy.
A few months earlier the AE Coin had announced it received preliminary approval from the Central Bank.
One AE Coin will be equivalent to one UAE Dirham. AE Coin aims to empower individuals and businesses to access modern financial tools, fostering financial inclusion, and supporting innovation in industries such as e-commerce, remittances, and decentralized finance (DeFi).
Ramez Rafeek, General Manager of AED stablecoin, remarked: “AE Coin harnesses the speed and efficiency of blockchain technology, offering instant, secure, and cost-effective transactions. It simplifies transfers, making them faster and more seamless. In a rapidly evolving digital world, AE Coin sets a new standard for trust, security, and innovation in digital currency.”
The future of money starts here!
— AE Coin (@AECoin_UAE) December 10, 2024
AE Coin is now the UAE’s first licensed stablecoin, approved by the Central Bank. 🚀#AEcoin #DigitalInnovation #UAE pic.twitter.com/1wHeGLJvzi
Tether is also launching AED backed stablecoin in UAE
Prior to this Tether had announced it would also be launched an AED backed stablecoin in early 2025.The company also has noted that it will launch the new stablecoin in partnership with Green Arcon Investments Ltd and Phoenix Group PLC.
According to Chainalysis, the stablecoin market in the UAE has grown significantly in 2024. Through the first half of the year, the value of stablecoins received by services (particularly CEX and DEX) in UAE totaled over US$9.8billion, a 55% spike over the US$6.3billion received over H1 2023.
Stablecoins now account for the largest share of crypto activity in the UAE (51%), which stands significantly higher than both Bitcoin (19%) and Ether (9%), which are typically considered to be the most recognized and popular cryptocurrencies.
Retail stablecoin transfers are the majority of transactions in UAE
Finally retail-sized transfers (US$10K and below) accounted for a meagre 6% of value received, while professional-sized (US$10k to US$1million), institutional-sized (US$1million to US$10million) and large institutional-sized (US$10million and above) accounted for 40%, 34%, and 20% respectively.
In terms of volume of stablecoin transfers in the UAE, retail sized transactions were by far the majority (93%). This indicates a highly active market for retail investors who are likely using stablecoins as a means to trade in and out of other virtual assets.
From Zero to Web3 Pro: Your 90-Day Career Launch Plan
