TL;DR
- The federal government of the United Arab Emirates authorized AE Coin as a payment method for public fees and services, backed by dirhams and approved for nationwide use.
- AE Coin is a stablecoin issued by AED Stablecoin LLC, operated through AEC Wallet, and licensed by the UAE Central Bank.
- Local banks will integrate AE Coin into federal collection systems, enabling onchain payments, full transaction traceability, and bank-level reconciliation.
The federal government of the United Arab Emirates officially recognized AE Coin as a valid payment method for government fees and services across the country. This designation grants it regulated stablecoin status, backed by dirhams and approved for payments to ministries, federal authorities, and official public service channels.
AE Coin is a token backed 1:1 by AED, issued by AED Stablecoin LLC and operated through AEC Wallet, an infrastructure developed by Al Maryah Community Bank (MBank). The stablecoin is licensed by the Central Bank of the United Arab Emirates and is integrated into the country’s regulated financial system.
To deploy the payment infrastructure, Commercial Bank of Dubai, Abu Dhabi Islamic Bank, and Network International signed memorandums of understanding with MBank. The agreements cover the technical and operational enablement required to accept AE Coin within the payment collection systems of federal entities. The integration will extend across ministries, regulatory bodies, and government service platforms.
The announcement was made during Abu Dhabi Finance Week, with participation from the Ministry of Finance. The new framework will incorporate stablecoin payment flows into the public revenue collection system, ensure full transaction traceability, and enable direct reconciliation within authorized banking infrastructure.
AE Coin for Local Payments and USDU for Foreign Currencies
The use of AE Coin will allow individuals and businesses to make instant payments for government fees and services via blockchain within a regulated framework. The system can operate without modifying existing compliance requirements or the financial controls applicable to public sector transactions.
Separately, the Financial Services Regulatory Authority of Abu Dhabi Global Market approved Universal Digital Intl Limited as the issuer of a Foreign Payment Token. The company launched USDU, a stablecoin fully backed by US dollars. The token was registered with the Central Bank as a foreign payment instrument.
USDU can be used for payments related to digital assets and derivatives within ADGM’s regulated environment. It is not authorized for domestic payments in the United Arab Emirates, as the local framework recognizes only AED-backed stablecoins as legal instruments for that purpose.
The regulatory framework establishes a clear separation between local payment tokens and foreign payment tokens. Dirham-backed stablecoins can integrate into public services and national payment flows, while tokens backed by other currencies remain restricted to specific environments under regulatory supervision
