The UAE dirham-backed stablecoin DDSC has received a No Objection Certificate from the Central Bank of the UAE (CBUAE) to go live on selected exchange platforms regulated by the Virtual Assets Regulatory Authority (VARA).

Backed by IHC, First Abu Dhabi Bank (FAB), and Sirius International Holding, the digital asset is working toward transitioning from institutional settlement to retail use cases.

The approval remains subject to the fulfilment of specific central bank requirements. DDSC is pegged 1:1 to the UAE dirham and settles on ADI Chain, an institutional Layer-2 blockchain developed by the ADI Foundation.

According to the consortium, the stablecoin has processed over AED 150 million in transactions since its initial institutional launch.

The regulatory milestone enables businesses and consumers to use the token for daily transactions. It offers a local currency option alongside the predominantly US dollar-denominated stablecoins in global digital asset markets.

However, broader retail and merchant adoption remains dependent on the subsequent rollout across the selected platforms.

“This approval represents another important milestone in the development of the UAE’s regulated digital financial ecosystem,”

said Syed Basar Shueb, CEO, IHC.

“Following the successful demonstration of DDSC at institutional scale, this next phase expands its potential reach to businesses and individuals.”

The framework allows merchants and retail users to transact using a familiar unit of account. It also uses blockchain infrastructure to enable faster settlements once the platforms go live.

Featured image credit: Edited by Fintech News UAE, based on image by Tanu via Magnific