PUSD, a Sharia-compliant stablecoin backed by Gulf currencies, will be deployed on ADI Chain, a Layer 2 network focused on institutional settlements in the Middle East.
According to an announcement shared with Cointelegraph, the stablecoin has around $2.3 billion in circulation and is backed 1:1 by reserves in Saudi riyals and UAE dirhams, which are pegged to the US dollar.
It is now available on multiple blockchains including Ethereum, BNB Chain, Solana and Tron, with ADI Chain marking its latest integration. The stablecoin is positioned to provide access to Islamic financial markets, which represent more than $3 trillion in assets globally, according to the ADI Foundation announcement.
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ADI Chain is the settlement layer of a dirham-backed stablecoin initiated by International Holding Company and First Abu Dhabi Bank and authorized by the Central Bank of the United Arab Emirates, according to the announcement.
The addition of PUSD introduces a second stablecoin to the network, allowing institutions to settle transactions using a dollar-pegged asset or a dirham-denominated token on the same infrastructure.
Transactions on the network require its native token for fees and are expected to support settlement through corridors linking the Gulf, Middle East and parts of Africa.
PUSD is issued by Palm Azgar Finance and is designed for institutional use, including corporate treasuries, exchanges, and payment processors.
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UAE builds stable currency framework
The United Arab Emirates has developed a multi-tiered regulatory framework for digital assets, with authorities such as the UAE Central Bank and Abu Dhabi Global Market (ADGM) setting rules for stablecoins and virtual asset providers. Against this backdrop, payment tokens linked to dirhams are being explored as a way to modernize domestic payments and improve cross-border settlements.
In December, UAE telecom giant e& signed an agreement with Al Maryah Community Bank to test a dirham-linked stablecoin licensed by the UAE central bank for consumer payments through its digital platforms in a pilot stage.
The following month, RAKBank received in-principle approval from the central bank to issue a dirham-backed stablecoin, with the planned token expected to be fully backed 1:1 by reserves held in regulated accounts. Approval is subject to final regulatory and operational conditions prior to any live broadcast.
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The push has also expanded to dollar-denominated tokens that operate under local rules. In January, Universal Digital launched USDU, a US dollar-backed stablecoin registered by the UAE central bank under its Payment Token Services Regulation, making it the first dollar-denominated token approved for payment use within the framework.
Separately, the Financial Services Regulatory Authority has granted approvals to several crypto companies, including Tether (USDT), Ripple USD, and Circle, to operate within the ADGM financial zone.
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