Central Bank Grants NOC for DDSC Stablecoin to Appear on VARA‑Licensed Platforms
UAE Central Bank grants NOC for DDSC stablecoin, allowing the AED-backed digital currency on VARA-licensed platforms to support payments and settlements.
The Central Bank of the United Arab Emirates has issued a formal no-objection certificate permitting the DDSC stablecoin to be made available through selected trading platforms regulated by the Virtual Assets Regulatory Authority. The DDSC stablecoin, pegged 1:1 to the UAE dirham, was developed through a collaboration between Global Holding Company, First Abu Dhabi Bank and Sirius International Holding. The approval follows regulatory requirements being met and signals a move toward broader retail access to an AED‑denominated digital currency.
Central Bank Issues No‑Objection Certificate
The Central Bank granted the NOC after the issuer satisfied prescribed compliance and operational criteria, according to a joint statement by the project partners. The certificate allows the token to be offered on platforms licensed by the Virtual Assets Regulatory Authority, subject to those platforms’ own onboarding and compliance controls. Officials framed the decision as a milestone for regulated digital assets in the UAE, enabling a domestically‑pegged stablecoin to operate within supervised market infrastructure.
Settlement and Technology on ADI Chain
DDSC is settled on ADI Chain, a Layer‑2 blockchain developed by ADI to provide faster and lower‑cost transaction settlement compared with some legacy infrastructure. The token is designed to maintain a one-to-one peg with the UAE dirham and to enable on‑chain settlement directly in the local currency. Project partners say the technical design supports institutional volumes while aiming to preserve transparency and operational resilience.
Institutional Usage and Transaction Record
Since its launch, DDSC has processed institutional transactions exceeding AED 150 million, the partners reported, citing the currency’s early uptake in corporate and interbank settlements. Those volumes are presented as evidence of the system’s scalability and readiness for expanded use. The NOC will allow the stablecoin’s reach to move beyond institutional corridors to selected retail and business users via licensed trading venues.
Access Through VARA‑Licensed Trading Platforms
Availability on VARA‑licensed platforms will enable customers to buy, sell and redeem DDSC through compliant channels overseen by the regulator. Partners say this approach balances wider access with regulatory safeguards, including KYC/AML checks and platform risk controls. Enabling trading and custody on regulated venues is expected to simplify onboarding for merchants, corporates and individual users while keeping transactions within the UAE regulatory perimeter.
Use Cases in Payments and Business Settlement
Project stakeholders highlight practical applications for DDSC across daily payments, merchant transactions, corporate supplier settlements and person‑to‑person transfers. Because the currency is denominated and settled in AED, it is presented as an alternative to dollar‑pegged stablecoins commonly used in global crypto markets. Market participants see potential efficiency gains in local payment flows and cross‑border arrangements that can leverage on‑chain settlement rails.
Partner Statements and Strategic Vision
Sayed Basar Shuaib, chief executive of Global Holding Company, described the NOC as a significant step in expanding DDSC’s use from institutional to broader commercial and retail contexts. Faton Hamdan Al Mazrouei, head of Retail, Commercial and Wealth Banking at First Abu Dhabi Bank, said the move supports safer, regulated digital payment options for customers and aligns with the UAE’s digital economy ambitions. Ajay Hansraj Batia, chief executive of Sirius International Holding, noted the approval reflects the partners’ shared vision to accelerate digital finance innovation from the UAE outward.
The partners also emphasized that listing on licensed platforms will be phased and conditional on each platform meeting oversight and consumer protection requirements. They said the objective is to ensure orderly market functioning while enabling practical payment and settlement use cases.
Potential Impact on the UAE’s Digital Payments Landscape
Regulators and industry sources expect the DDSC stablecoin to contribute to the UAE’s wider goal of building a competitive digital financial ecosystem by lowering frictions in domestic payments. An AED‑native stablecoin could reduce currency conversion steps, speed up reconciliation processes and offer merchants a familiar unit of account with blockchain settlement features. Observers caution that monitoring and continued regulatory engagement will be essential as retail use expands.
Market participants will be watching how VARA‑licensed platforms implement custody, liquidity and compliance arrangements, and how quickly merchant acceptance grows. The approval is likely to spur further collaboration between banks, technology providers and regulated trading venues as the ecosystem matures.
The DDSC project partners said distribution via selected platforms will begin after each venue confirms compliance with regulatory and operational requirements, and that they will keep stakeholders informed as the rollout progresses.
