PUSD stablecoin deploys on ADI Chain, targeting $3T Islamic finance market

PUSD, a Shariah-compliant stablecoin backed by Gulf currencies, is set to deploy on ADI Chain, a Layer 2 network focused on institutional settlement in the Middle East.

According to an announcement shared with Cointelegraph, the stablecoin has about $2.3 billion in circulation and is backed 1:1 by reserves held in Saudi riyals and UAE dirhams, which are pegged to the US dollar.

It is already available on multiple blockchains, including Ethereum, BNB Chain, Solana and Tron, with ADI Chain marking its latest integration. The stablecoin is positioned to provide access to Islamic finance markets, which represent more than $3 trillion in assets globally, according to the announcement from the ADI Foundation.

ADI Chain is the settlement layer for a dirham-backed stablecoin initiated by International Holding Company and First Abu Dhabi Bank and licensed by the Central Bank of the UAE, according to the announcement.

The addition of PUSD introduces a second stablecoin to the network, allowing institutions to settle transactions using either a dollar-linked asset or a dirham-denominated token on the same infrastructure.

Transactions on the network require its native token for fees and are expected to support settlement across corridors linking the Gulf, the Middle East and parts of Africa.

PUSD is issued by Palm Azgar Finance and is designed for institutional use, including corporate treasuries, exchanges and payment processors.

Related: Here’s why crypto is moving to Dubai and Abu Dhabi

UAE builds out stablecoin framework

The United Arab Emirates has developed a multi-layered regulatory framework for digital assets, with authorities including the Central Bank of the UAE and Abu Dhabi Global Market (ADGM) establishing rules for stablecoins and virtual asset providers. Within that framework, dirham-pegged payment tokens are being explored as a way to modernize domestic payments and improve cross-border settlement.

In December, UAE telecom giant e& signed an agreement with Al Maryah Community Bank to test a dirham-pegged stablecoin licensed by the UAE central bank for consumer payments across its digital platforms in an early-stage pilot.