Ai Stablecoin Set to Transform the UAE's Financial Landscape

Ai Stablecoin Set to Transform the UAE’s Financial Landscape

Stablecoins have been rapidly gaining traction across the world, and the UAE is no exception. The nation is preparing to launch the AE stablecoin, its first regulated stablecoin, after receiving final approvals from the local authorities last December.

In an article published on 27 April 2025, by the National, Reece Merrick, the Managing Director for the Middle East and Africa for Ripple, stated, “Utility will drive stablecoin adoption … clear regulation and compliance are fundamental to all financial services and are as important to blockchain adoption.”

Merrick further explained, “The jurisdictions that are working to create regulatory clarity around digital assets are the ones that will see greater investment and institutional adoption, driving real-world utility.”

Discover AE Coin: The UAE’s First Regulated Stablecoin.

Designed to combine trust and innovation, AE Coin paves the way for a secure and stable financial future.

Get ready to embrace the next evolution in digital finance.

Coming soon, exclusively through our trusted agents. pic.twitter.com/Wo41IriUVe

— AE Coin (@AECoin_UAE) December 26, 2024

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Although digital currency in the UAE is not yet as widely popular as its physical counterparts, the authorities are laying the groundwork to increase its adoption.

The UAE’s broader Digital Dirham strategy drives the launch of the AE coin, which aims to create a structured framework for stablecoin operations in the country. Moreover, it is anticipated that the AE coin will enhance the efficiency of remittance services for UAE residents.

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AE Stablecoin: A Gamechanger For UAE’s Expatriate Community

The UAE has a significant expatriate community, who send remittances from the UAE to their home country. Remittance through the banks typically takes a few days to execute and charges between 2% and 3% in transaction fees.

Stablecoins, on the other hand, can settle instantly at a fraction of that cost, and for that reason alone, the introduction of the AE Stablecoin could potentially reshape the $40 billion annual remittances that expatriates from the UAE send to countries in Africa, Asia, etc.

According to data published by Chainanalysis, 93% of all UAE stablecoin transfers are retail-sized, highlighting a higher adoption of stablecoin for retail use rather than institutions.

Furthermore, stablecoins eliminate the need for paperwork, approvals, and physical branches that are staples of traditional financial systems. All that anyone needs to send and receive money anytime, anywhere with a stablecoin is an internet connection and a digital wallet.

As the AE stablecoin is pegged to the dollar, Chainanalysis policy lead for the Middle East and Africa states, “They function as a gateway for broader crypto trading.”

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Key Takeaways

93% of stablecin investments in the UAE are primarily small-scale investments./key_takeaway]

An estimated $208 billion of stablecoins are in circulation so far in 2025.

UAE is set to join El Salvador, Australia, China and Singapore in implementing a framework to regulate stablecoins./key_takeaway]