Shariah-Compliant Stablecoin PUSD Moves Into MidEast Institutional Arena

A dollar-linked stablecoin built to meet Islamic finance standards is now operating on a new blockchain network anchored in the Middle East, adding a second digital currency to a settlement platform backed by some of Abu Dhabi’s biggest financial names.

Backed By Gulf Currencies, Not Just The Dollar

PUSD, issued by Palm Azgar Finance, holds reserves in Saudi riyals and UAE dirhams — both pegged to the US dollar — rather than holding US dollars directly.

That structure is central to its Shariah-compliant design, which is aimed at institutions operating under Islamic finance rules that prohibit interest and require asset backing.

The stablecoin has roughly $2.3 billion in circulation and runs on several major blockchains, including Ethereum, BNB Chain, Solana, and Tron. ADI Chain is its newest addition.

ADI Chain was built as a settlement layer for a dirham-backed token that came out of a partnership between International Holding Company and First Abu Dhabi Bank. The Central Bank of the UAE licensed it.

With PUSD now on board, institutions using the network can settle transactions in either a dollar-linked or dirham-denominated token operating on the same platform.

The ADI Foundation says the network is designed to support payment corridors across the Gulf, broader Middle East, and parts of Africa.

A $3 Trillion Market In The Crosshairs

Islamic finance assets are estimated at more than $3 trillion worldwide, according to the ADI Foundation. That market has traditionally been served by conventional banks and funds operating under Shariah guidelines, but blockchain-based alternatives have struggled to break through at scale.

Sharia Law At A Glance

Shariah law forbids interest, limits speculation, and requires financial instruments to be backed by real assets — rules that disqualify most crypto products outright. For a stablecoin to meet that standard, it must hold verifiable reserves and generate no interest-based returns.