In a significant development for Middle Eastern financial technology, the Sharia-compliant stablecoin PUSD has officially integrated with ADI Chain, a licensed Layer 2 network designed for institutional payments. This strategic partnership, first reported in March 2025, aims to modernize cross-border transactions, particularly between Saudi Arabia and the United Arab Emirates (UAE).
The integration marries PUSD's substantial $2.3 billion in circulation with ADI Chain's regulatory-approved infrastructure. PUSD is uniquely backed 1:1 by reserves held in both Saudi Riyals (SAR) and UAE Dirhams (AED), providing dual-currency stability. ADI Chain operates as a licensed platform under the Central Bank of the UAE's regulatory framework, offering institutional users a compliant pathway to blockchain adoption.
The collaboration addresses key challenges in regional financial interoperability, offering advantages including regulatory and Sharia compliance, high transaction throughput, and cost efficiency. It arrives as regional governments, under initiatives like Saudi Arabia's Vision 2030 and the UAE's Virtual Assets Regulatory Authority (VARA), prioritize financial digitization.
The integration is poised to significantly impact cross-border trade and remittances. Trade between Saudi Arabia and the UAE totaled approximately $28.7 billion in 2024, with traditional settlement taking 2-3 days. This new payment layer could reduce settlement to seconds. It also targets the annual $4.1 billion remittance corridor between the two countries, serving a large expatriate population.
PUSD is issued by Palm Azgar Finance and was already active on networks like Ethereum, BNB Chain, Solana, and Tron. ADI Chain, developed by International Holding Company and First Abu Dhabi Bank, already served as the settlement layer for another dirham-backed stablecoin licensed by the Central Bank of the UAE. The addition of PUSD gives institutions a choice between a dollar-linked and a dirham-based token on the same regulated system.
Financial experts highlight the importance of ADI Chain's regulatory status, which provides crucial legitimacy and confidence for institutional adoption. The move also taps into the global Islamic finance market, which holds over $3 trillion in assets. Industry analysts anticipate future developments, including potential expansion to other GCC currencies and the development of Sharia-compliant decentralized finance (DeFi) applications.
