In a significant development for the country’s digital finance sector, the Central Bank of the UAE (CBUAE) has approved Zand, the nation’s AI-powered digital bank, to issue Zand AED. The stablecoin is the UAE’s first regulated, multi-chain Dirham-backed digital asset on public blockchains.
Zand AED is fully backed one-to-one by AED reserves held in segregated, regulated accounts, ensuring full redemption value. Its smart contracts are independently audited, providing real-time transparency and reserve attestations. The stablecoin is available across multiple public blockchains, enabling fast cross-border settlement and seamless integration for enterprises, developers, and financial institutions.
A bridge between traditional finance and DeFi
The stablecoin is issued by Zand Trust, a wholly owned subsidiary of Zand Bank PJSC, licensed and supervised by the CBUAE, and rated BBB+ by Fitch Ratings.
Launching an AED-backed stablecoin on public blockchains is not simply a milestone for Zand. It is a breakthrough for the UAE,” said Mohamed Alabbar, Chairman of Zand. This initiative carries our national currency into the digital future and reinforces the UAE’s position as a global leader in financial innovation.
Michael Chan, CEO of Zand, added: Zand AED is more than a stablecoin. It is the UAE’s bridge between traditional finance and decentralized finance. It unlocks the next generation of payments, tokenization, and digital asset innovation. All of it is built on trust, transparency, and regulatory clarity.
Strategic significance in the global stablecoin market
With the global stablecoin market projected to reach $3 trillion in the coming years, Zand AED strategically positions the UAE at the forefront of regulated digital finance. By providing a secure and future-ready digital foundation, the stablecoin opens doors for institutions, developers, and FinTech companies to build in one of the world’s most advanced financial ecosystems.
Zand AED underscores the UAE’s ambition to lead in digital currency adoption while maintaining regulatory rigor, setting a potential model for other nations exploring central bank-backed or fully regulated stablecoins.