Zand Launches UAE’s First Regulated Dirham-Backed Stablecoin on Public Blockchains

Editorial Team

Last updated 18-11-2025

3 min

Zand has launched Zand AED, the UAE’s first regulated Dirham-backed stablecoin on public blockchains.

With approval from the Central Bank, it signifies a serious step in financial infrastructure.

Each token is backed by real AED reserves in regulated accounts, assuring transparency and trust.

The stablecoin aims to bridge traditional and decentralised finance, boosting new digital asset use cases.

Zand’s initiative is seen as a push for the UAE into a digital future.

Zand has taken a bold step into the UAE’s digital finance landscape by rolling out Zand AED, the country’s first regulated Dirham-backed stablecoin to operate on public blockchains. The move comes with the blessing of the Central Bank of the UAE, which positions the project as more than a flashy tech experiment and closer to a serious piece of financial infrastructure. I reckon developments like this show how quickly the region is moving to claim its spot in the global fintech race.

What makes Zand AED interesting is how tightly controlled it is. Every token is backed one-to-one by real AED reserves, held separately in regulated accounts. That said, the bank isn’t asking people to just take their word for it. The stablecoin’s smart contracts are independently audited, and the reserves come with attestations to keep the whole structure transparent. It’s available across several public blockchains too, which should make it handy for businesses or developers who want faster, borderless settlement without the usual faff of legacy rails.

The coin is issued through Zand Trust, a subsidiary of Zand Bank PJSC, which itself operates under the supervision of the Central Bank and holds a BBB+ rating from Fitch. Hearing Mohamed Alabbar, Zand’s chairman, describe the launch as “a breakthrough for the UAE” reflects the ambition behind it. In his view, bringing the Dirham onto public chains pushes the country further into the digital future. On the flip side, there’s also the practical angle mentioned by CEO Michael Chan, who said the stablecoin aims to act as a bridge between traditional and decentralised finance, unlocking new payment models, tokenisation efforts and wider digital asset use cases.

With some analysts predicting the global stablecoin market could hit $3 trillion, the UAE clearly doesn’t want to be late to the party. And believe it or not, when I meet founders around the region—especially those Arageek likes to cheer on—they often say the same thing: dependable on-chain money could save them a world of headache when building cross-border products. It’s spot on, really. Even if stablecoins still make some people a bit uneasy, the idea of a regulated, fully backed AED version may ease a few nerves.

Zand itself brands the bank as AI-powered and digital-first, with a mission to tie together the speed of fintech and the security of a licensed institution. Whether they pull that off in practice remains to be seen, but this launch is definately a sign they’re not afraid to jump in with both feet.

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