UAE’s Zand Bank Wins Approval to Launch Dirham‑Backed Stablecoin

Zand Bank has received regulatory approval from the Central Bank of the UAE (CBUAE) to launch a multi-chain stablecoin backed by the dirham.

Structure and Security

Zand Bank, an artificial intelligence (AI)-powered digital bank, has secured a critical regulatory approval from the Central Bank of the UAE (CBUAE) to launch Zand AED, a regulated and multi-chain dirham-backed stablecoin. The digital currency is seen propelling the dirham onto global digital rails, merging the trust of regulated banking with the speed and transparency of blockchain technology.

The stablecoin is issued by Zand Trust, a wholly owned subsidiary of Zand Bank PJSC, which operates under the supervision and licensing of the CBUAE and holds a BBB+ rating from Fitch Ratings.

“Launching an AED-backed stablecoin on public blockchains is not simply a milestone for Zand. It is a breakthrough for the UAE,” said Mohamed Alabbar, Chairman of Zand. “This initiative carries our national currency into the digital future and reinforces the UAE’s position as a global leader in financial innovation.”

Zand AED is fully backed one-to-one by AED reserves held in segregated and regulated bank accounts, guaranteeing complete redemption value. According to a report, the stablecoin’s operations are supported by real-time transparency through independently audited smart contracts and continuous reserve attestations. It is available across multiple public blockchains, allowing for fast, borderless settlement and seamless integration for developers, enterprises, and financial institutions worldwide.

Read more: Fed’s Miran: Stablecoins Are ‘Transformational’ for Emerging Markets

Michael Chan, CEO of Zand, emphasized the broader implications: “Zand AED is more than a stablecoin. It is the UAE’s bridge between traditional finance and decentralized finance. It unlocks the next generation of payments, tokenization, and digital asset innovation. All of it is built on trust, transparency, and regulatory clarity.”

With the global stablecoin market projected to reach $3 trillion in the coming years, Zand AED is seen positioning the UAE at the forefront of regulated digital finance.

FAQ 💡

• What is Zand AED? A regulated, dirham‑backed stablecoin launched by Zand Bank with CBUAE approval.
• Why is this important for the UAE? It positions the UAE as a global leader in regulated digital finance and blockchain innovation.
• How is Zand AED secured? It is fully backed one‑to‑one by AED reserves with real‑time audited transparency.
• Where can it be used globally? Available across multiple blockchains, enabling fast, borderless settlement and integration worldwide.