The newly launched Dirham-backed stablecoin, known as DDSC, is now operational on the ADI Chain, having received approval and licensing from the UAE Central Bank. This stablecoin is strategically designed to maintain a one-to-one backing with reserves of the UAE dirham, ensuring stability and trust in its value.
The initiative for DDSC was spearheaded by the International Holding Company (IHC) in collaboration with the First Abu Dhabi Bank (FAB). As the largest bank in the UAE by assets, FAB plays a crucial role, providing custody for the fiat reserves that underlie the stablecoin and facilitating its distribution through established banking channels.
According to the official release, DDSC operates exclusively on the ADI Chain as its primary settlement layer. This means that all issuance and transfers of the token occur solely within this network, which is characterized as an institutional-grade Layer 2 solution, designed specifically to meet national-scale compliance demands.
The release highlighted the importance of compliance, security, and efficiency in the technology framework of the ADI Chain. Built to align with regulatory standards, the ADI Foundation functions under the Abu Dhabi Global Market (ADGM) regulatory framework, ensuring that the infrastructure supports regulated financial operations.
For technological efficiency, the ADI Chain leverages ZKsync Airbender technology, recognized as a cutting-edge zero-knowledge proof system. Furthermore, core contracts and systems have been audited by OpenZeppelin, reinforcing institutional readiness for a compliant launch.
The ecosystem surrounding DDSC includes the ADI token, which serves as the gas and utility token for operations within the ADI Chain. This token is instrumental in executing smart contracts and facilitating transactions throughout the network, including those involving DDSC.
The launch of DDSC is part of a broader strategy aimed at enhancing regional settlement capabilities. There are plans to eventually extend the stablecoin”s functionality to encompass other Gulf Cooperation Council (GCC) currencies. Additionally, connections to African markets through M-Pesa-linked infrastructure are also in the works, establishing a more integrated financial ecosystem.
As the project progresses, the ADI Chain has already secured memoranda of understanding (MOUs) with notable global firms, including BlackRock, Mastercard, and Franklin Templeton, along with connections to M-Pesa for remittance solutions across multiple African countries.
