The digital currency landscape in the Middle East has received a significant boost with the launch of the DDSC stablecoin, which is now live on the ADI Chain, solidly backed 1:1 by UAE dirham reserves. This launch comes with the green light from the UAE Central Bank, which has granted the necessary approvals for the stablecoin’s operation.
Designed specifically for institutional deployment, the ADI Chain serves as the exclusive settlement layer for DDSC, ensuring that all token issuance and transfers occur within this network. This setup not only enhances transaction efficiency but also aligns with the regulatory requirements of the UAE.
Stablecoin Licensing and Project Initiators
The successful launch of DDSC is the result of collaboration between two prominent entities: International Holding Company (IHC) and First Abu Dhabi Bank (FAB). IHC, recognized as a major player in the investment landscape by market capitalization, teams up with FAB, the largest bank in the UAE by both assets and market share. Together, they are paving the way for a new era of digital transactions backed by traditional fiat currency.
FAB’s role as the banking partner is crucial, providing essential services such as the custody of the fiat reserves backing DDSC, and facilitating its distribution through established banking systems across 20 markets.
Focus on Compliance and Security
ADI Chain is characterized by its commitment to compliance, security, and operational efficiency. Under the auspices of the ADGM regulatory framework, the ADI Foundation is dedicated to supporting a robust financial infrastructure that adheres to regulations. Additionally, the chain employs ZKsync Airbender technology, a cutting-edge zero-knowledge proof system that is revolutionizing transaction privacy while maintaining transparency.
In terms of security, the core contracts and systems have undergone auditing by OpenZeppelin, an industry leader in blockchain security audits. This thorough review covers critical components and standards, ensuring that DDSC meets institutional readiness requirements for regulated deployment.
Future Expansion Plans
The DDSC stablecoin is just the beginning of a broader vision for regional financial settlement. The ADI Chain’s gas and utility token, ADI, will facilitate smart contract executions and on-chain transactions, including those for DDSC. The project has ambitions to expand its offerings by introducing additional GCC currencies and enhancing connectivity to Africa through a collaboration with M-Pesa, aimed at remittance capabilities across multiple African markets.
With the recent mainnet activity resulting in secured MOUs with key institutions like BlackRock, Mastercard, and Franklin Templeton, along with partnerships for remittance solutions via M-Pesa, the stage is set for DDSC to become a player in the global stablecoin arena.
