Dubai, UAE — The UAE’s digital-finance landscape took a major step forward this week as Zand Bank announced the launch of what it describes as a fully regulated AED stablecoin issued on public blockchains. The move, highlighted in industry posts circulating on LinkedIn, signals a potential shift in how digital money will function across the Gulf, although an official Central Bank statement confirming retail approval has not yet been published.
According to public commentary from industry executives, the AED stablecoin is backed one-to-one by dirham reserves, issued by a UAE-licensed bank, and designed for both retail and corporate use. Supporters of the project describe it as “real, audited, and live,” positioning it as a foundational step toward tokenized finance in the region.
Zand builds on earlier digital-asset approvals
Zand Bank has been strengthening its digital-asset position over the last year. Public records show that the bank secured a Virtual Assets Regulatory Authority (VARA) custody license and began rolling out institutional-grade digital-asset infrastructure in late 2024. These developments align with the UAE’s broader regulatory strategy, which includes clear rules for payment-token issuance and digital-asset services under both the Central Bank and VARA frameworks.
Industry analysis suggests that a regulated AED stablecoin could accelerate cross-border payments, streamline merchant settlements, and expand programmable-money use cases. The region’s growing network of virtual-asset service providers may also benefit from a domestic digital currency that integrates directly with public blockchain rails.
Regional impact and early reactions
When confirmed at a regulatory level, the AED stablecoin would make the UAE one of the first jurisdictions to offer a fully compliant, bank-issued digital dirham accessible to everyday users. This would reinforce the country’s position as a leading digital-asset hub, particularly as other Gulf nations evaluate their own tokenization strategies.
In commentary shared publicly, blockchain founders and financial-technology leaders described the launch as a “major win for the UAE,” noting that a regulated stablecoin issued by a licensed bank demonstrates the maturity of the country’s digital-asset oversight. Some industry voices believe this development could pave the way for tokenized treasury products, on-chain trade finance, and new settlement models for remittances.
Verification still needed
While the announcement has attracted enthusiasm, official confirmation from the Central Bank of the UAE has not yet appeared in public regulatory bulletins. The UAE does maintain clear frameworks for payment tokens, stored-value facilities, and bank-issued digital money, but the specific classification of Zand’s new AED stablecoin will likely determine its final use cases and compliance boundaries.
Industry observers expect further clarification through upcoming regulatory circulars or direct statements from the Central Bank, especially as the UAE continues balancing private-sector innovation with consumer protection and financial-stability obligations.
A turning point for tokenized finance
Whether used for retail payments, cross-border trade, or enterprise settlement flows, a fully regulated AED stablecoin would deepen the UAE’s long-term ambition to merge traditional banking with blockchain-based finance. If upcoming regulatory confirmations align with industry claims, this milestone may mark the start of a broader regional shift toward real-world tokenization.
