Remittances and B2B Payments Emerge as Leading Stablecoin Use Cases in the UAE
Stablecoins are moving into a more mature phase in the United Arab Emirates, supported by clearer regulation, expanding digital asset infrastructure, and strong regional demand for faster payment solutions, according to a new paper released by the MENA Fintech Association and blockchain infrastructure provider Fireblocks.
The report identifies cross-border payments, remittances, business-to-business (B2B) settlement, treasury operations, and merchant payments as the main areas where stablecoins may gain traction in the UAE. Among these, remittances and cross-border payments are described as the most commercially developed use case today.
Cross-Border Payments Remain the Strongest Use Case
Stablecoins are increasingly being used to address long-standing inefficiencies in international money transfers, including high transaction costs, slow settlement times, and limited visibility across multiple intermediaries. The report says these capabilities make stablecoins particularly well suited to remittances and cross-border payments.
The scale of this opportunity is significant in the UAE. The country is the world’s second-largest outbound remittance hub after the US. According to Statista, outward remittances from the UAE reached AED 183 billion, or about US$50 billion, in 2024, with major flows going to India, Pakistan, the Philippines, Egypt, and Bangladesh.
Stablecoin activity in global cross-border payments has also risen sharply. The Bank for International Settlements estimated that cryptocurrencies facilitated around US$600 billion in cross-border payments in the second quarter of 2024, with USDT and USDC accounting for roughly two-thirds of that volume.
B2B Settlement Gains Momentum
The report also highlights B2B settlement as a likely early-growth area for stablecoins in the UAE. Businesses often need faster fund movement, better treasury visibility, and payment options that are not restricted by banking hours. Stablecoins can help fill gaps where fiat payment rails are slow, expensive, or unavailable outside traditional operating times.
Industry examples already suggest operational benefits. Worldpay, a global payment processing company, has said that blockchain technology and stablecoin settlement have enabled 24/7/365 merchant settlement at T+0, improved capital efficiency, and reduced settlement times by as much as 50% compared with traditional rails.
McKinsey estimated that B2B stablecoin payment volume reached US$226 billion in 2025, representing only a small share of global B2B payments, but one that is growing quickly. The firm reported a 733% year-over-year increase in B2B stablecoin payment volumes in 2025.
Merchant Payments Face Adoption Hurdles
Merchant payments are seen as another potential stablecoin use case in the UAE, although the report notes that adoption may take longer. Consumer and merchant behavior is already deeply shaped by cards, digital wallets, loyalty programs, and existing acquiring networks. As a result, broader merchant adoption may depend on the development of local currency stablecoins, programmable settlement, and more interoperable payment infrastructure.
Regulation Supports Market Development
The UAE’s regulatory environment is a major factor supporting stablecoin growth. The Central Bank of the UAE’s Payment Token Services Regulation provides a federal framework covering issuance, conversion, custody, and transfer, while also setting requirements around licensing, reserve assets, redemption, and safeguards.
According to the report, at least four AED-pegged stablecoins have already received approval from the Central Bank of the UAE: AE Coin, DDSC, Zand AED, and Rakbank’s AED stablecoin. Other approved stablecoins include USDU, issued by Universal Digital, and RLUSD, issued by Ripple.
The country’s broader digital asset framework also includes oversight from the Securities and Commodities Authority, VARA in Dubai, and financial regulators in the DIFC and ADGM.
Industry Analysis
The findings suggest that the UAE is positioning itself as a practical testing ground for stablecoin adoption in payments. Remittances and B2B settlement appear to be the most immediate opportunities because they address real commercial pain points and align with the country’s role as a major regional payment corridor. With regulatory clarity improving and institutional infrastructure expanding, stablecoins may increasingly move from a crypto-native tool to a mainstream payments instrument in the UAE.
Looking ahead, market growth will likely depend on how quickly businesses, consumers, and financial institutions embrace new payment models. Still, the combination of regulatory support, strong remittance flows, and rising institutional interest points to continued momentum for stablecoin use in the country.
