The Central Bank of the UAE granted a no-objection certificate to the DDSC stablecoin, clearing it to partner with exchange platforms regulated by Dubai's Virtual Assets Regulatory Authority. Developed by International Holding Company, First Abu Dhabi Bank and Sirius International Holding, DDSC is pegged 1-to-1 to the UAE dirham and runs on the ADI blockchain. The approval transitions the token from institutional testing—where it processed over $40 million (150 million dirhams)—into the consumer market. Under the federal Payment Token Services Regulation, the central bank holds sole authority over payment tokens to protect the national currency and limit financial risk, making the certificate a mandatory regulatory bridge for VARA-licensed exchanges to legally list local-currency stablecoins.
Central Bank NOC Enables VARA Platform Partnerships
The no-objection certificate confirms that DDSC met the central bank's compliance, asset-backing and operational standards. While Dubai's Virtual Assets Regulatory Authority licenses local exchanges, those platforms cannot legally list or convert local-currency stablecoins without federal clearance. The certificate allows approved VARA exchanges to host and trade DDSC, moving the token from a private corporate network into public retail channels. The UAE's regulatory framework assigns the central bank responsibility for stablecoins at the federal level, while the Capital Market Authority oversees investment-related virtual asset service providers.
DDSC Offers 1-to-1 Dirham Peg on ADI Blockchain
DDSC is positioned as a local alternative to U.S. dollar-denominated stablecoins, which command more than 90% of the global digital asset market. By using local currency on a blockchain, businesses and consumers can bypass legacy banking corridors, avoiding payment delays and transaction fees. The platform enables peer-to-peer transfers, merchant payouts and supplier invoices to settle instantly in dirhams. The regulatory boundary is designed to transition the local digital asset market from speculative trading toward real-world utility.
Institutional Trial Processed Over $40 Million in Transactions
The transition to retail exchanges follows an institutional trial in which DDSC processed more than $40 million (150 million dirhams) in transactions to test its stability and capacity. Syed Basar Shueb, CEO of International Holding Company, stated: "This approval represents another important milestone in the development of the UAE's regulated digital financial ecosystem." Approved VARA platforms will next list DDSC to scale retail and merchant payments across the UAE.
FAQ
What did the Central Bank of the UAE approve for DDSC?
The Central Bank of the UAE granted a no-objection certificate to DDSC, allowing the dirham-backed stablecoin to partner with exchange platforms regulated by Dubai's Virtual Assets Regulatory Authority.
How much did DDSC process during its institutional trial?
DDSC processed more than $40 million (150 million dirhams) in transactions during its institutional testing phase to verify stability and operational capacity.
