The UAE has approved its first regulated AED-backed stablecoin, bringing the dirham into the global digital economy.
Key Takeaways
- Zand Bank has received approval from the Central Bank of the UAE (CBUAE) to launch Zand AED, the country’s first regulated stablecoin backed by the dirham.
- Zand AED is a multi-chain stablecoin fully backed one-to-one by AED reserves held in segregated, regulated accounts.
- The stablecoin is issued by Zand Trust, a subsidiary of Zand Bank PJSC, and is designed to operate with real-time transparency through independently audited smart contracts and reserve attestations.
- With the global stablecoin market expected to hit $3 trillion, Zand AED positions the UAE as a leader in regulated digital finance.
What Happened?
Zand, an AI-powered digital bank in the UAE, has launched Zand AED, the nation’s first officially approved stablecoin backed by the local currency. The Central Bank of the UAE granted regulatory approval for this launch, marking a major step in the country’s digital finance journey.
Zand AED is issued by Zand Trust, a fully owned subsidiary of Zand Bank PJSC, which is supervised by the CBUAE and holds a BBB+ rating from Fitch Ratings.
UAE’s Zand Bank Launches First Dirham-Backed Stablecoin on Public Blockchain @Official_Zand announced that it has received final approval from the Central Bank of the UAE to launch its fully dirham-backed stablecoin, Zand AED, becoming the first dirham-pegged, multi-chain… pic.twitter.com/5VIbQT8D8L
— AGORACOM – George (@AGORACOM) November 18, 2025
Zand Brings the Dirham to the Blockchain
The launch of Zand AED signals a shift in how national currencies can function in the modern digital world. By anchoring the stablecoin to the United Arab Emirates dirham (AED), Zand is merging the credibility of a regulated financial institution with the openness and speed of blockchain technology.
Zand AED is built with key structural safeguards:
- Fully backed one-to-one by AED reserves held in regulated, segregated bank accounts.
- Available on multiple public blockchains, enabling global, real-time settlements.
- Supported by independently audited smart contracts and continuous reserve attestations.
- Designed for developers, enterprises, and financial institutions to integrate easily across borders.
The stablecoin is not just a digital representation of the dirham. It is a foundational layer for cross-border payments, digital asset tokenization, and decentralized finance (DeFi) applications.
Voices Behind the Milestone
Mohamed Alabbar, Chairman of Zand, described the launch as a moment of national significance:
Michael Chan, CEO of Zand, added:
A Strategic Bet on the Future
As the global demand for regulated stablecoins grows, the UAE is making a clear bet on the digital economy. By launching Zand AED, the country is offering a regulated, trustworthy digital asset that can serve both local and international markets.
This stablecoin also provides developers and fintechs with a secure and programmable AED-denominated asset, opening up new possibilities for smart contract-based payments, DeFi tools, and digital marketplaces.
Zand AED could also serve as a model for how central banks and licensed institutions collaborate to offer stable, transparent digital assets without compromising on regulatory compliance.
CoinLaw’s Takeaway
Honestly, I think this is a bold and smart move by the UAE. In my experience tracking stablecoin development across the globe, many countries are still hesitant to mix public blockchain access with national currency representation. But the UAE just jumped ahead by pairing regulatory clarity with open digital rails. I found the backing of Zand AED by real reserves, its Fitch-rated parent bank, and the commitment to ongoing audits especially reassuring. This is the kind of structure that brings confidence to developers and institutions alike. The UAE is clearly aiming to be a fintech powerhouse, and this move sets a solid example for others.
