The UAE to Launch Digital Dirham by the End of 2025

The Central Bank of the UAE has announced that the launch of the digital dirham is scheduled for the fourth quarter of 2025, and in the initial phase, it will be available for use in retail trade. In the future, the use of the digital currency is planned to expand to wholesale trade and cross-border payments.

In addition to the central bank–managed blockchain digital currency project, the UAE has established a regulatory framework for the issuance of stablecoins pegged to the dirham.

In particular, in the autumn, the local issuer AED Stablecoin received preliminary approval from the UAE Central Bank to implement the first project for issuing stablecoins backed by the national currency. The regulatory framework consists of the 2024-approved rules for issuing payment tokens, known as the “Payment Token Services Regulation.” These rules provide for the possibility of obtaining three types of licenses: Dirham Payment Token Issuer, Payment Token Custodian and Transferor, and Payment Token Conversion.

Applicants must demonstrate compliance with requirements regarding the size of the statutory capital, implementation of AML/CFT standards, risk management, and financial accounting. At the same time, the issuer must maintain reserves corresponding to the value of the tokens at the end of each business day.

Furthermore, Tether plans to issue stablecoins pegged to the UAE dirham on the TON blockchain. The stablecoin will be backed by reserves in dirhams to ensure its price stability. This represents an important step for all parties involved in the project: for the UAE, it provides an additional channel for technological market development and new opportunities for innovative financial products, including in DeFi; for Tether, it means diversification and entry into new markets; and for TON, it offers scaling opportunities and enhancement of the blockchain’s reputation.