UAE Dirham Stablecoin DDSC Receives CBUAE Clearance for VARA-Linked Exchange Listings
The UAE dirham-backed stablecoin DDSC has received a No Objection Certificate from the Central Bank of the UAE (CBUAE), allowing it to move toward launch on selected exchange platforms regulated by the Virtual Assets Regulatory Authority (VARA).
Backed by International Holding Company (IHC), First Abu Dhabi Bank (FAB), and Sirius International Holding, DDSC is currently positioned as an institutional digital asset, with plans to expand into retail use cases over time. The approval remains subject to the fulfilment of specific central bank requirements before the stablecoin can go live on the selected platforms.
According to the consortium, DDSC is fully pegged 1:1 to the UAE dirham and operates on ADI Chain, an institutional Layer-2 blockchain developed by the ADI Foundation. The project has already processed more than AED 150 million in transactions since its initial institutional launch, the consortium said.
The latest regulatory step is expected to support wider adoption of a local-currency digital asset in the UAE’s growing digital finance ecosystem. It also offers an alternative to the US dollar-denominated stablecoins that currently dominate much of the global digital asset market.
From Institutional Settlement to Retail Use
The consortium said DDSC is being developed to support a transition from institutional settlement applications toward broader retail and commercial use. If the rollout progresses as planned, businesses and consumers may be able to use the token for everyday transactions through the approved exchange platforms.
Syed Basar Shueb, CEO of IHC, described the approval as an important milestone in the development of the UAE’s regulated digital financial ecosystem. He added that after demonstrating DDSC at institutional scale, the next phase expands its potential reach to businesses and individuals.
The move also points to the continued development of blockchain-based payment infrastructure in the UAE, where regulators and market participants have been increasingly active in advancing digital asset frameworks. The use of a dirham-backed stablecoin may also help support faster settlement once the relevant platforms are live.
Regulatory Context
While the No Objection Certificate marks a significant step, the stablecoin still needs to satisfy additional central bank conditions before broader deployment. The approval is specifically tied to selected exchange platforms under VARA oversight, indicating that market access will be phased rather than immediate and universal.
For now, DDSC remains in a controlled expansion stage, with its next phase dependent on regulatory completion and platform rollout. The project’s progress will likely be watched closely by financial institutions, digital asset firms, and merchants interested in local-currency settlement options in the UAE.
Industry Analysis
DDSC’s approval highlights the UAE’s continued push to build a regulated digital asset ecosystem that balances innovation with oversight. A dirham-pegged stablecoin may strengthen local settlement infrastructure, reduce dependence on foreign-currency stablecoins, and create new possibilities for payments and merchant transactions in the domestic market.
At the same time, the phased nature of the approval suggests that regulators remain cautious about retail expansion. The outcome of DDSC’s rollout on VARA-linked exchanges could serve as a useful indicator of how quickly regulated stablecoins can move from institutional use to broader consumer adoption in the UAE.
