UAE Dirham Stablecoin DDSC Wins Central Bank NOC For VARA Platforms

DDSC, the UAE dirham-backed stablecoin developed by International Holding Company, First Abu Dhabi Bank and Sirius International Holding, has received a No Objection Certificate from the Central Bank of the UAE to partner with selected VARA-regulated exchange platforms. The approval allows DDSC to become available through compliant channels beyond its initial institutional settlement use case.

The stablecoin is pegged 1:1 to the UAE dirham and settles on ADI Chain, an institutional Layer-2 blockchain developed by ADI Foundation. IHC said DDSC has already processed more than $40.8 million (AED 150 million) in transactions to date, pointing to early institutional-scale activity before broader platform access.

DDSC’s latest approval follows earlier live transaction activity. In May, IHC completed a $30 million (AED 110 million) DDSC transaction on ADI Chain, a transfer the company positioned as evidence that the stablecoin infrastructure was already being used beyond a testing environment. That transaction gives useful context to the new exchange-platform approval: DDSC is not only seeking wider access, but is moving from institutional demonstrations toward regulated availability through selected VARA-regulated platforms.

Access through selected VARA-regulated exchanges could make DDSC easier to buy, redeem and use for payment-related activity. The company said the next phase may support retail, merchant and business transactions, including customer payments, supplier settlement and person-to-person transfers.

Ajay Hans Raj Bhatia, CEO of Sirius International Holding, said: “Receiving the Central Bank’s NOC marks an important step in bringing regulated digital payments closer to everyday users. By extending DDSC beyond institutional applications, we are creating new opportunities for businesses and consumers to transact securely, efficiently and confidently in UAE dirhams. This milestone reflects the strength of the collaboration between our partners and our shared ambition to accelerate the future of digital finance in the UAE.”

Futoon Hamdan AlMazrouei, Group Head of Personal, Business, Wealth and Privileged Client Banking Group at FAB, said: "This approval broadens access to regulated digital payments, enabling more businesses and individuals to transact securely in UAE dirhams. By providing access to DDSC through selected VARA-regulated exchange platforms, we are making regulated digital payments more accessible across the financial ecosystem. At FAB, we remain committed to delivering innovative payment solutions that support the evolving needs of our clients, while contributing to the UAE's vision to build a globally leading digital economy."

The Case for Dirham-Based Stablecoins

Stablecoins are often associated with US dollar-denominated crypto markets, but DDSC is designed around the UAE’s own currency. The dirham’s long-standing peg to the US dollar gives the local unit a stable reference point, with the Central Bank saying it intervenes in foreign exchange markets to maintain the peg.

A dirham-backed payment token also fits into the UAE’s wider effort to regulate digital assets rather than leave payment activity in an informal gray zone. The Central Bank’s Payment Token Services Regulation sets the framework for payment-token activity, including dirham-denominated tokens, while Dubai’s VARA oversees virtual asset service providers in Dubai outside the DIFC.

The regulatory structure is important because DDSC is not being positioned as an offshore crypto experiment. Its backers are major UAE institutions, including FAB, which reported total assets of about $366 billion (AED 1.34 trillion) as of June 2025, and IHC, which lists a market capitalization of about $232.8 billion (AED 855 billion).

DDSC Moves Beyond Institutional Use

DDSC’s exchange-platform approval follows the earlier Central Bank approval for the UAE dirham-backed stablecoin, paving the way for broader adoption through regulated platforms. At the time, the partners said the project was intended to support payments, business activity and emerging digital use cases through UAE-developed blockchain infrastructure.

The latest approval narrows the gap between institutional blockchain settlement and everyday payment access. If selected platforms meet the NOC requirements, DDSC could become available through regulated exchange rails, giving users a familiar AED-denominated digital asset rather than requiring them to move through dollar-based stablecoins.

IHC CEO Syed Basar Shueb, said: “This approval represents another important milestone in the development of the UAE’s regulated digital financial ecosystem. Following the successful demonstration of DDSC at institutional scale, this next phase expands its potential reach to businesses and individuals through selected VARA-regulated platforms, supporting faster, more efficient and fully regulated digital transactions in UAE dirhams. At IHC, we remain committed to advancing innovative financial infrastructure that strengthens the UAE’s position as a global leader in digital assets and next-generation financial services.”

With the Central Bank’s NOC in place, DDSC is entering a new phase in its rollout across the UAE’s regulated digital asset ecosystem.