All You Should Be Aware Of Regarding UAE’s Initial Fully Regulated Stablecoin
Stablecoins are quickly becoming trending worldwide, and the UAE is part of this trend. The country is set to introduce the AE stablecoin, its inaugural regulated stablecoin, after obtaining final approvals from the local authorities last December.
In an article released on 27 April 2025 by the National, Reece Merrick, the Managing Director for Ripple in the Middle East and Africa, remarked, “Utility will propel stablecoin adoption … clear regulations and regulation are essential for all financial services and equally crucial for distributed database integration.”
Merrick elaborated, “The regions that are actively establishing regulatory clarity for digital assets are those likely to attract more investment and institutional adoption, fostering genuine utility in the real world.”
Introducing AE Coin: The UAE’s First Regulated Stablecoin.
Crafted to blend trust with innovation, AE Coin sets the stage for a safe and stable financial future.
Prepare to welcome the future of digital finance.
Launching soon, exclusively through our trusted partners. pic.twitter.com/Wo41IriUVe
— AE Token (@AECoin_UAE) December 26, 2024
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While crypto asset is still not as widely embraced as its physical equivalents in the UAE, authorities are setting the stage for greater adoption.
The UAE’s overarching Digital Dirham strategy supports the rollout of the AE Token, designed to establish a solid framework for stablecoin activities within the nation. Additionally, it is expected that the AE Coin will improve the effectiveness of remittance services for residents of the UAE.
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AE Stablecoin: A Transformative Solution for the UAE’s Expat Community
The UAE hosts a large expatriate community that regularly sends remittances back to their home countries. Transfers through banks usually take several days to process and incur transaction fees ranging from 2% to 3%.
In contrast, stablecoins can be settled instantly at a fraction of that cost, making the introduction of the AE Stablecoin a potential gamechanger for the $40 billion in annual remittances sent by expatriates from the UAE to regions in Africa, Asia, and beyond.
According to data published by Chainanalysis, 93% of all stablecoin transfers in the UAE are retail-sized, indicating a greater preference for stablecoin use among everyday consumers rather than institutions.
Moreover, stablecoins do away with the paperwork, approvals, and physical locations that characterize traditional financial systems. To send and receive money with a stablecoin, all one requires is an internet connection and a wallet.
Since AE Stablecoin is pegged to the dollar, the Chainanalysis policy lead for the Middle East and Africa states, “They serve as a gateway for expanded crypto trading.”
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Key Insights
- 93% of stablecoin investments in the UAE are predominantly small-scale.
- Around $208 billion worth of stablecoins are currently in circulation as of 2025.
- The UAE is poised to join El Salvador, Australia, China, and Singapore in implementing a framework for stablecoin regulation.
The post Everything You Should Know About UAE’s First Fully Regulated Stablecoin first appeared on 99Bitcoins.
