UAE Central Bank Clears DDSC Stablecoin for Retail Use on VARA-Regulated Exchanges
The Central Bank of the UAE has granted a no-objection certificate to the dirham-backed stablecoin DDSC, marking a key step toward retail adoption. This approval allows DDSC to list on exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), moving the stablecoin beyond its institutional phase.
Developed by International Holding Company (IHC), First Abu Dhabi Bank and Sirius International Holding, DDSC is pegged 1-to-1 to the UAE dirham and operates on the ADI blockchain. The central bank’s certificate confirms compliance with the Payment Token Services Regulation, which gives the federal institution sole authority over payment tokens to protect the national currency and limit financial risk.
Prior to this clearance, local stablecoins could not be listed or traded on VARA-licensed exchanges without federal approval. The certificate bridges this gap, enabling approved VARA platforms to host and trade DDSC. The transition follows an institutional trial in which DDSC processed over $40 million (150 million dirhams) in transactions.
DDSC aims to offer a local alternative to U.S. dollar-denominated stablecoins, which dominate over 90% of the global digital asset market. By using dirham-based blockchain transactions, businesses and consumers can bypass traditional banking corridors, reducing payment delays and transaction fees. The platform supports peer-to-peer transfers, merchant payouts and supplier invoices with instant settlement in dirhams.
“This approval represents another important milestone in the development of the UAE’s regulated digital financial ecosystem,” said Syed Basar Shueb, CEO of IHC.
The UAE’s multi-jurisdictional framework separates oversight: the central bank regulates stablecoins at the federal level, while the Capital Market Authority oversees investment-related virtual asset service providers. This structure is designed to steer the local digital asset market from speculative trading toward real-world utility.