UAE’s ADI Chain Links to zkSync in Bid to Power Regulated Dirham Stablecoin

On X, zkSync confirmed that ADI Chain will become part of its Elastic Network of ZK chains. The integration signals mutual interest: the UAE’s push for a regulated stablecoin, and zkSync’s goal of expanding its interoperable rollup architecture.

Earlier in 2025, the UAE’s ADQ sovereign wealth fund, International Holding Company, and First Abu Dhabi Bank disclosed plans to issue a dirham-backed stablecoin regulated by the Central Bank of the UAE and deployed on ADI’s blockchain. The token is designed to foster blockchain-based payments across retail, institutional, and government use cases, and to support advanced functions like machine-to-machine and AI-driven transactions.

In August 2025, the ADI Foundation also launched a public testnet for ADI Chain, described as a compliance-native EVM Layer-2 environment built for high throughput with AI-assisted protocol management and GPU acceleration. The testnet milestone is critical because it allows developers and stakeholders to trial integration, stress test scalability, and validate stablecoin functions ahead of a full mainnet deployment.

The zkSync Elastic Network, sometimes referred to as the Elastic Chain, is a multi-chain ZK rollup ecosystem where independent ZK chains, rollups, validiums, or volitions interoperate natively while sharing a unified user experience. With the upgrade to zkSync 3.0 in 2024, the project transformed from a single rollup into a shared elastic architecture with a unified router and bridge, enabling other ZK chains to join and transact seamlessly. One of the core design features is native interoperability: chains in the Elastic Network can communicate, send messages, execute cross-chain calls or bundled atomic transactions, all without relying on external bridging logic.

By joining this framework, ADI Chain will gain access to zkSync’s liquidity pool, composability with applications on other ZK chains, and a smoother user experience through shared wallet infrastructure. The arrangement also ensures that regulatory alignment can be preserved while still benefiting from the efficiency and reach of zkSync’s network.

There are several clear advantages to this arrangement. Liquidity and composability could expand significantly, as ADI Chain’s stablecoin would not be limited to a single national ecosystem but could instead tap into activity across other zkSync chains. Users would not need to manually bridge assets or switch networks because cross-chain operations can be executed behind the scenes. Security may also be stronger because zkSync chains anchor proofs on Ethereum Layer-1 and operate within a shared architectural model that is considered more robust than isolated bridges.

At the same time, the challenges are equally significant. Regulatory compliance remains central, as the stablecoin must meet the oversight standards of the Central Bank of the UAE, including financial safeguards, while ensuring that these requirements align with the chain’s underlying technical design. Although ADI is described as compliance-native, mapping decentralized architecture to legal requirements is a complex balancing act. Another consideration is adoption. Merchants, consumers, and government agencies will need to integrate dirham-based stablecoin payments into real-world workflows.

Technical maturity is also in question: ADI Chain is still in its testnet phase, and it must prove its resilience under real-world stress conditions, including large volumes of cross-chain transactions. Even with zkSync’s native interoperability, engineering friction can arise when coordinating consensus rules, gas economics, and bridging state changes while maintaining regulatory constraints.

For the UAE, connecting the ADI Chain to a major Layer-2 ZK ecosystem serves multiple goals. Rather than remaining an isolated national network, ADI becomes part of a global composable ecosystem of decentralized finance and Web3 applications. Partnership with zkSync’s architecture lends credibility to the stablecoin project and demonstrates a willingness to integrate with widely used cryptographic scaling solutions.

As more chains adopt the zkSync Stack, ADI could benefit from shared tooling, developer resources, and network effects. For zkSync, the integration of a regulated stablecoin chain expands its scope beyond crypto-native rollups to sovereign-backed currency rails, potentially making its Elastic Network more attractive to institutions and governments.

This development also takes place in a wider context. Governments around the world are pursuing central bank digital currencies and regulation-forward stablecoin projects. The UAE is already advancing its Digital Dirham initiative and developing regulatory frameworks for stablecoins. At the same time, competition is emerging: Tether, the issuer of USDT, has announced plans to launch a dirham-pegged stablecoin in partnership with Phoenix Group and Green Acorn Investment, pending approval from UAE authorities. That could result in a competitive or complementary market dynamic, with multiple dirham-linked tokens operating in the region under different governance structures.

The next critical step for ADI Chain is to move from testnet to mainnet and to issue the stablecoin under the supervision of the Central Bank of the UAE. Technical integration with zkSync’s Elastic Network, including cross-chain messaging and final registration, must also be completed. Beyond technical factors, ecosystem adoption will matter. Wallet providers, decentralized applications, merchants, and government nodes will need to integrate the new stablecoin in order for it to reach meaningful usage. Finally, user trust will depend on transparency around reserve management and governance, with credible audits playing a key role.

A successful rollout would mark more than a technical milestone. By connecting a regulated national stablecoin to a major ZK network, the UAE would be positioning itself at the forefront of digital finance infrastructure. This move could serve as a case study for institutions worldwide that are weighing how to link traditional monetary systems with blockchain-based innovation.