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The Central Bank of the UAE has approved the DDSC stablecoin for partnerships with exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority. A July announcement from the project developers detailed that the clearance follows the processing of more than AED 150 million in DDSC transactions since launch. International Holding Company executed an AED 110 million institutional transfer in May using the stablecoin on the ADI Chain, which The Asian Banker described as part of the UAE’s boldest digital asset initiative to date. This latest regulatory green light expands the stablecoin’s utility beyond its initial operational scope.
According to a statement distributed by the partners, the February approval from the Central Bank of the UAE enabled the live operation of the dirham-pegged asset. First Abu Dhabi Bank, the International Holding Company and Sirius International Holding positioned DDSC as an institutional-grade instrument for government-led and regulated use cases. The stablecoin maintains a one-to-one peg with the UAE dirham and functions exclusively on the ADI Chain Layer 2 blockchain infrastructure.
TradingView News reported that the May transaction represented one of the largest disclosed stablecoin deals in the UAE. Cumulative activity has now surpassed AED 150 million, demonstrating growing institutional interest. The central bank has been methodical in its approvals, having licensed a dollar-denominated stablecoin earlier in the same period, The Banker reported.
The project has contributed to the UAE hosting multiple AED-backed stablecoins, with DDSC counted among four such initiatives according to sector updates. This expansion aligns with the country’s strategy to foster innovation in digital finance while maintaining strict regulatory oversight. DDSC serves as both the issuer and distributor of the stablecoin under its central bank license.
In the announcement on its newsroom, the consortium stated that the approval delivers trusted infrastructure. “With the Central Bank’s approval and our transition into live operation, we are delivering trusted, institutional-grade infrastructure that strengthens resilience, accelerates innovation, and expands what is possible in regulated digital payments,” the statement said. The infrastructure targets remote communities, maritime operations and other underserved segments alongside core institutional flows.
Further integration with VARA-regulated platforms is expected to enhance liquidity and facilitate secondary market activity for the stablecoin. The central bank’s stepwise authorisation process first focused on issuance and operational readiness before permitting exchange partnerships. Market participants anticipate increased transaction volumes as the ecosystem matures.
