ADNOC Distribution Becomes First UAE Fuel Retailer Accepting AE Coin

The firm becomes the first fuel and mobility retailer within the UAE to start using a digital regulated token for daily business operations as a result of the Memorandum of Understanding signed with Al Maryah Community Bank and AED Stablecoin LLC at Abu Dhabi Finance Week.

The project marks the entry of the AED Coin, an AED-backed stablecoin issued and regulated by the UAE Central Bank, as a payment option via AEC Wallet for fuel stations, convenience stores, and car services at ADNOC Distribution.

The AE Coin will operate as a fully reserved digital asset with a 1:1 peg ratio with the UAE dirham. With regards to payments, customers will have access to blockchain payments with immediate settlement capabilities via the AEC Wallet, an offering by Al Maryah Community Bank. The UAE's adoption of blockchain and digital assets with immediate settlement capabilities and blockchain payments with immediate settlement capabilities highlights its efforts towards a modern digital economy with regulated digital infrastructures.

Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, commented on the development, noting that, “Accepting AE Coin across our network represents a significant step in Adnoc Distribution’s journey to enhance mobility and convenience retail through innovation. By embracing blockchain-powered transactions, we are adopting advanced technologies to create the industry’s best customer experiences, while preparing our services for the future. We take pride in our role supporting the UAE’s vision to become a global leader in secure digital payments.”

Mohammed Wassim Khayata, CEO of Al Maryah Community Bank, highlighted the significance of the collaboration, stating: “This partnership marks a historic moment for the UAE’s financial and retail sectors. By enabling virtual asset payments across the Adnoc Distribution network, we are bringing the future of digital transactions to millions of consumers. This is a real-world example of how secure, regulated blockchain technology can simplify payments, enhance customer convenience, and accelerate the UAE’s digital transformation journey.”

Ramez Rafeek, General Manager of AED Stablecoin LLC, added context to the rollout, noting: “AE Coin was developed to make secure, instant, regulator-approved virtual asset payments a reality in daily life. Adnoc Distribution’s nationwide adoption of AE Coin represents a major milestone for the UAE and sets an important benchmark for the virtual asset industry globally. This partnership shows how licensed and fully reserved payment tokens can be used in mainstream retail environments, moving the promise of crypto from concept to real-world utility at scale.”

The launch of AE Coin within the ADNOC Distribution network marks a very tangible use case for regulated stablecoin within the Middle East. Unlike traditional digital tokens that have been created for speculation purposes, AE Coin has been designed and implemented with use within payment systems as its end objective. It will offer predictability with regards to value due to its association with fiat money and will allow for blockchain-based settlement without being exposed to traditional market volatilities associated with cryptocurrency.

From a customer perspective, it would result in quicker completion of transactions and perhaps lower costs associated with operations, depending on emerging payment dynamics. Although functionality for making payments using AE Coin will be incorporated into AEC Wallet, customer adoption will be governed by several factors, including customer awareness and familiarity with the use of digital assets as mediums for making payments.

The UAE’s move integrates into its overall pattern with regards to digital finance as regulated digital assets, stablecoins, and blockchain-based settlement systems are increasingly interwoven with traditional markets. The UAE has maintained a commitment to being at the global forefront in its approach to digital assets and innovation. It has done so with a focus on structured rules and cooperation between government agencies and financial sector and private sector innovators. The issuance of payments via AE Coin by ADNOC Distribution aligns with UAE strategy because it shows that regulated digital assets have more mainstream uses as opposed to limited speculation.

The implementation of AE Coin across ADNOC Distribution facilities stands as a potential case study in how local businesses in the UAE can incorporate regulated virtual assets into their payment systems. If the collaboration proves successful, it may influence future partnerships within the country’s financial and commercial sectors as organizations look to enhance customer experience by offering secure alternative digital payment methods. It also underscores that digital assets can be adopted in ways that align fully with national regulatory frameworks.

The inclusion of AE Coin within ADNOC Distribution’s retail business marks a significant step forward for the UAE’s digital payment sector and reinforces its position at the cutting-edge of using regulated blockchain technology within mainstream commerce. As the system scales, its performance and customer adoption will offer valuable insights into how stablecoins can function within national payment ecosystems and what future innovations may follow.