UAE Stablecoin Rules Boost Safe Digital Asset Use
<p><strong>New Stablecoin Laws Set to Transform Digital Asset Landscape; UAE Leads with AED-Backed Token</strong></p><p><i>Dubai, September 2025</i> — New regulations for stablecoins are accelerating mainstream adoption of digital assets, experts say, following the signing of the <strong>Genius Act</strong> by US President Donald Trump. The law establishes a federal framework for USD-backed stablecoins, aiming to enhance transparency, security, and consumer protection. Analysts project the global stablecoin market — currently worth over <strong>$260 billion (Dh954 billion)</strong> — could surge to <strong>$2 trillion (Dh7.3 trillion)</strong> by 2028.</p><h3>UAE at the Forefront</h3><p>The UAE has positioned itself as a leader by approving the country’s first <strong>AED-backed stablecoin</strong>, <strong>AE Coin</strong>, under the Central Bank’s digital payment token framework. The coin promises instant, low-cost, and secure payments while supporting the nation’s strategy to strengthen <strong>regional financial sovereignty</strong>.</p><p>“Clear regulations create security and drive adoption,” said <strong>Meera Judge</strong>, Director of Regulatory Licensing and Policy at Binance. “The AED-backed stablecoin is not just another token — it’s a bold step toward a regulated, globally competitive crypto ecosystem.”</p><h3>Local Currency, Global Reach</h3><p>Stablecoins are designed to maintain a fixed value, making them ideal for payments and DeFi. Experts say AED-based tokens will reduce reliance on USD stablecoins while boosting regional trade, inclusion, and innovation.</p><p><strong>Gracy Chen</strong>, CEO of Bitget, noted: “The UAE’s centralized oversight under the CBUAE contrasts with the US dual federal-state approach. Both build trust, but the UAE emphasizes autonomy and financial independence.”</p><h3>Institutional Support</h3><p>Global and regional banks — including <strong>JPMorgan, Bank of America, Citigroup, Wells Fargo, FAB, MBank, and Zand Bank</strong> — are entering the space, further validating stablecoins as a legitimate financial tool. While bank-issued tokens could boost liquidity and efficiency, experts warn they may also heighten competition with existing players like USDT and increase compliance costs for exchanges.</p>