In a defining milestone for the digital economy of the United Arab Emirate ( UAE ), the central bank of the UAE ( CBUAE ) has approved Zand, the nation’s artificial intelligence ( AI )-powered digital bank, to launch Zand AED, the country’s first regulated, multi-chain, UAE dirham ( AED )-backed stablecoin on public blockchains.

Zand AED, the bank argues, represents a new era for the dirham by bringing the national currency into global digital rails with the security of a regulated bank and the speed and openness of blockchain technology.

The stablecoin is fully backed one-to-one by dirham reserves that are held in segregated and regulated accounts to ensure complete redemption value. It is supported by real-time transparency through independently audited smart contracts and reserve attestations. It is available across multiple public blockchains, enabling fast borderless settlement and seamless integration for developers, enterprises and financial institutions.

The stablecoin is issued by Zand Trust, a wholly owned subsidiary of Zand Bank PJSC, which is licensed and supervised by the CBUAE, and is rated BBB+ by Fitch Ratings.

With the global stablecoin market projected to reach US$3 trillion in the coming years, Zand AED, the digital bank argues, positions the UAE at the forefront of regulated digital finance. It provides a secure and future-ready digital foundation for institutions, fintechs and developers that aim to build in one of the world’s most advanced financial ecosystems.

“Launching an AED-backed stablecoin on public blockchains is not simply a milestone for Zand,” says Mohamed Alabbar, Zand’s chairman. “It is a breakthrough for the UAE. 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, Zand’s CEO, adds: “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.”