Investing.com -- Abu Dhabi’s sovereign wealth fund ADQ, conglomerate IHC, and First Abu Dhabi Bank (FAB), the largest lender in the United Arab Emirates (UAE) by assets, announced on Monday their plans to launch a new stablecoin backed by the UAE dirham. This move signifies the Gulf country’s growing investment in the cryptocurrency sector.

The three organizations confirmed that the proposed stablecoin will be under full regulation by the UAE’s central bank. This new digital currency, backed by the country’s official currency, will provide a stable value in the volatile world of cryptocurrencies.

The announcement from ADQ, IHC, and FAB comes as part of a broader trend of financial institutions and governments around the world showing increasing interest in the potential of digital currencies. The UAE’s decision to regulate this new stablecoin underlines the country’s commitment to provide a secure and regulated environment for the use and trading of cryptocurrencies.

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