UAE's First Digital Bank Zand Set to Launch AED-Backed Stablecoin Under Central Bank

The UAE is moving one step closer to a fully tokenized financial ecosystem as Zand Bank prepares to introduce the country’s first AED-backed stablecoin on a public blockchain. While the token has not yet gone live on-chain, the announcement signals a major regulatory and technological milestone for the region.

Zand, already recognized as the UAE’s first fully digital bank, confirmed that its upcoming stablecoin will be issued under the supervision of the Central Bank of the UAE (CBUAE), a detail that immediately sets it apart from most fiat-backed tokens in the market today. With CBUAE’s regulatory framework now maturing, this launch is expected to become a benchmark for how tokenized money should operate in a fully licensed environment.

Zand was founded with a bold mission: to be the UAE’s first fully digital bank built specifically for crypto-native clients. Rather than retrofitting traditional banking infrastructure, Zand’s architecture was designed from the ground up to support blockchain-native assets and real-world tokenization. As part of its roadmap, it secured a digital-asset custody license from VARA (Virtual Assets Regulatory Authority), giving it the regulatory legitimacy to hold, safeguard, and transact with crypto assets on behalf of its customers.

This VARA license is significant: it means Zand is not merely a fintech company dabbling in crypto, it is a regulated financial institution, entrusted by UAE authorities to manage private keys and secure capital in a fully compliant way. That gives the upcoming stablecoin project institutional credibility, especially for entities that require regulated custody when engaging in tokenized finance.

For now, Zand has revealed the project and its compliance structure, but has not published the contract address or activated public minting. That means the stablecoin is announced but not yet circulating, and the market is eagerly waiting for the final switch to be turned on.

Still, the timing aligns with the UAE’s broader digital asset ambitions. The country is already positioning itself at the center of global tokenization, from real-world asset markets to cross-border payments, and a regulated Dirham stablecoin is a logical next step. Once live, the token could unlock a new class of on-chain settlement rails for banks, fintechs, exchanges, and even retail users across the Middle East.

For crypto companies looking to enter the region, this move is further proof that the UAE is not just talking about blockchain adoption, it is building the foundation in real time. And for global stablecoin markets dominated by USD-based tokens, the arrival of a regulated AED stablecoin could introduce an entirely new liquidity corridor between the Gulf and the rest of the world.

Zand’s announcement marks the beginning of a new chapter: one where sovereign-backed digital money becomes a standard feature of the UAE’s financial system. More details, including the official launch, supported chains, and on-chain transparency frameworks, are expected to be revealed soon.

If this rollout delivers what it promises, the UAE could become the first major market where a government-supervised stablecoin plays a central role in everyday digital finance.