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Homepage > News > Finance > UAE approves stablecoin; Bahrain debuts BTC-linked fund As stablecoins become the lifeblood of the digital asset world and a critical bridge to traditional finance, more countries are seeing homegrown solutions that cater to the specific needs of their people. The latest is the United Arab Emirates, where the central bank granted approval for AED Stablecoin to issue the first-ever regulated stablecoin in the country. Elsewhere in the Middle East, one of Bahrain’s largest banks has launched a BTC-linked product that claims to offer 100% protection against the digital asset’s price drops. UAE’s first stablecoin The UAE has become a digital asset haven in recent years. A Chainalysis report found that its digital asset sector grew 42% in the year ending June 2024, four times faster than the region’s average, to make it the third-largest market in the Middle East after Turkey and Saudi Arabia. This growth has bubbled into the country’s first stablecoin. AED Stablecoin LLC announced this week that it had received in-principal approval from the Central Bank of the UAE (CBUAE) to launch AE Coin, the first stablecoin pegged to the dirham. The issuer notes that AE Coin will be fully backed by transparent and regularly audited fiat currency reserves. It combines the best of both worlds—the stability of fiat currency with the agility of blockchain technology, said AED Stablecoin. The company touts AE Coin as a multifaceted digital currency that allows users to save, invest and make day-to-day payments. Businesses can also make and receive instant payments to their partners and suppliers at very low costs. The company intends to get into e-commerce payments, partner with merchants and introduce a mobile wallet app for users in the near future. It also plans on diving into decentralized finance (DeFi), integrating with DeFi platforms to…

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Filed under: News - @ October 21, 2024 5:11 am