UAE Telecom Giant e& to Pilot Dirham Stablecoin for Consumer Payments

In a significant advancement in blockchain-based financial infrastructure, UAE telecom giant e& is set to test a regulated stablecoin aimed at improving consumer payments. This initiative represents a vital step in the UAE's journey toward regulated digital finance.

Key Takeaways:

e& is collaborating with Al Maryah Community Bank to pilot the AE Coin stablecoin for everyday consumer transactions.
The trial will include various e& digital services, such as bill payments.
This initiative echoes the UAE’s commitment to promote regulated digital finance.

UAE telecom leader e& is working with Al Maryah Community Bank to explore the practicality of a dirham-pegged stablecoin for everyday use in its digital services.

UAE Telecom Giant e& to Pilot Dirham Stablecoin for Consumer Payments

e& Tests AE Coin for Consumer Payments and Digital Services

The focus of this pilot is AE Coin, a stablecoin that is fully backed and licensed by the Central Bank of the UAE.

As part of this partnership, e& will investigate how AE Coin can integrate with its existing payment systems. This could enable customers to pay mobile and home service bills, top up prepaid accounts, and manage postpaid subscriptions using a blockchain-based method.

Both companies highlight that this collaboration is part of the UAE’s wider ambition to position regulated digital finance within mainstream activities.

Hatem Dowidar, the CEO of e& Group, emphasized the benefits of the stablecoin, stating it offers “instant settlement, complete transparency, and frictionless access.” This makes it an attractive option for future payment measures.

Adding to this, Al Maryah Community Bank's CEO, Mohammed Wassim Khayata, noted the pilot could pave the way for new “real-world applications” of licensed digital assets.

While e& is interested in connecting this token to e-commerce platforms eventually, this pilot is currently in an exploratory phase.

The memorandum of understanding indicates an intention to work together but does not guarantee a specific timeline, implementation scope, or direct impact on consumers. For now, the focus is on testing the infrastructure internally rather than launching it to the public.

Ramez Rafeek, the general manager of AED Stablecoin—the company behind AE Coin—described the partnership as a significant achievement in the realm of regulated digital payments, positioning this stablecoin as potentially crucial for essential services.

This initiative puts AED Stablecoin among the first firms receiving preliminary approval under the UAE’s Payment Token Service Regulation framework, establishing it as a frontrunner in the region's increasingly competitive stablecoin landscape.

UAE’s Regulatory Efforts in Virtual Assets

Meanwhile, the UAE has been actively refining its regulatory approach toward virtual assets to develop a compliant digital finance ecosystem.

Tether and Binance Receive Regulatory Approvals in ADGM

Recently, it was reported that Tether’s USDT stablecoin has gained regulatory approval as a recognized fiat-referenced token across various blockchains in the Abu Dhabi Global Market (ADGM).

Tether announced that the ADGM allows licensed financial institutions in the free zone to carry out regulated operations involving USDT across platforms such as Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON, adding to previous approvals on Ethereum, Solana, and Avalanche.

In related news, Binance has disclosed that it has achieved comprehensive authorization to operate its primary platform, Binance.com, under the oversight of the ADGM. This milestone follows extensive regulatory scrutiny.

Binance will function through three distinct legal entities in the ADGM: an exchange, a clearing house, and a broker-dealer. This structure is akin to traditional financial markets, aimed at facilitating regulated trading, custody, settlement, and off-exchange services.