IHC tests dirham stablecoin at scale

Abu Dhabi’s International Holding Company has completed a Dhs110m transaction using DDSC on ADI Chain, marking one of the first live institutional-scale tests of a UAE dirham-backed stablecoin on a regulated blockchain infrastructure.

The transfer, valued at about $30m, was executed on ADI Chain, an institutional Layer-2 blockchain developed by ADI Foundation. DDSC is designed as a digital payment token backed one-for-one by UAE dirham reserves, positioning it as a settlement instrument for institutions seeking faster treasury movement, cross-border payment options and blockchain-based transaction records.

IHC said the transaction demonstrated the operational readiness, scalability and resilience of the DDSC ecosystem as it moves from development into live deployment. The company framed the transfer as proof that institutional-grade digital assets can handle high-value financial flows, rather than remain confined to pilot projects or speculative trading activity.

DDSC was launched through collaboration involving IHC, First Abu Dhabi Bank and Sirius International Holding, with ADI Foundation providing the blockchain infrastructure. The structure places the project within a broader push by Abu Dhabi entities to build regulated digital finance rails that can connect banks, companies and payment networks without relying solely on legacy settlement systems.

The transaction comes as the UAE is tightening oversight of payment tokens while trying to preserve its position as a digital asset hub. The Central Bank of the UAE’s Payment Token Services Regulation has created a framework for licensing and supervision of stablecoin-related services, including reserve backing, compliance obligations and restrictions on unlicensed activity. That regulatory backdrop is central to the commercial case for DDSC, since institutional users typically require legal clarity, reliable redemption and transparent reserve management before moving large volumes through a digital payment token.

Stablecoins have become one of the most important segments of the digital asset market because they link blockchain transactions to fiat currencies. Globally, most stablecoin liquidity remains tied to the US dollar, giving dollar-backed tokens a dominant role in crypto trading, remittances and decentralised finance. A dirham-backed instrument offers the UAE a potential domestic alternative for payments, settlement and tokenised assets, while supporting the country’s ambition to deepen financial infrastructure around its own currency.

The significance of the Dhs110m transfer lies less in the amount alone than in the type of participant involved. IHC is one of Abu Dhabi’s largest listed investment groups, with interests spanning energy, real estate, healthcare, agriculture, technology and financial services. Its involvement gives DDSC a large corporate anchor at a time when stablecoin adoption is increasingly shifting from crypto-native users to banks, asset managers, payment companies and multinational groups.

ADI Chain is being developed as infrastructure for stablecoins and real-world assets, a category that includes tokenised deposits, bonds, funds, invoices and other financial instruments represented on blockchain networks. Its backers argue that a regulated Layer-2 system can provide faster settlement and lower transaction costs while retaining controls needed by banks and corporate users, including identity checks, compliance monitoring and auditable transaction trails.

Supporters of the model say blockchain-based settlement can reduce delays caused by cut-off times, intermediary banking chains and manual reconciliation. That is especially relevant for treasury operations, trade finance and payments between regions where correspondent banking routes can be slow or costly. For businesses moving funds across the Middle East, Africa and Asia, the appeal lies in near-real-time settlement, programmable controls and a transparent record of transfers.

Risks remain. Stablecoins depend on trust in reserve management, redemption rights, technology security and regulatory enforcement. Failures elsewhere in the digital asset sector have made institutions cautious about token design, counterparty exposure and operational safeguards. Even fiat-backed tokens can face pressure if users doubt the quality, availability or legal protection of reserves. For that reason, monthly attestations, licensed custodians, strict compliance systems and clear redemption procedures will be critical if DDSC is to gain wider use.

Competition is also likely to intensify. Banks, fintech companies and blockchain networks are racing to develop tokenised cash products as regulators in major markets set rules for stablecoins. Some institutions prefer tokenised bank deposits, arguing they sit more naturally within the existing banking system. Others see fully reserved payment tokens as more flexible for cross-border and around-the-clock settlement. The UAE’s approach appears to be building both regulatory oversight and market infrastructure before attempting broader adoption.