Zand, a UAE digital bank licensed by the Central Bank of the UAE, has integrated Circle’s USD Coin (USDC) into its payment infrastructure and announced plans to launch AEDZ, a stablecoin pegged 1:1 to the UAE dirham.
The move enables eligible UAE businesses to use USDC for regulated payment, settlement, treasury management, trading, and international transactions. Zand says its dirham-backed stablecoin, described as the UAE’s first fully regulated multi-chain stablecoin backed entirely by dirham reserves, will operate across multiple public blockchains and connect with USDC to simplify cross-border transfers and programmable financial operations.
According to Zand, businesses could manage dirham and dollar payments without maintaining separate digital asset infrastructures, potentially reducing delays in supplier payments, corporate settlements, and international treasury operations. The bank will restrict these services to eligible companies that meet applicable legal, compliance, and regulatory requirements.
The initiative aligns with the UAE’s digital economy strategy, which aims to double the sector’s contribution to non-oil GDP by 2032. Zand is backed by investors linked to an Abu Dhabi ruling family, Franklin Templeton, and Aditya Birla Group. No specific launch date for AEDZ has been announced, and details of its underlying reserve mechanism remain forthcoming.
The announcement highlights growing institutional use of stablecoins for real-world payments rather than speculative trading.
