rewrite this title UAE Central Bank Clears DDSC for VARA Platforms, Bringing Dirham Stablecoin to Consumers

Federal Oversight and the Retail Transition

The UAE dirham-backed stablecoin DDSC has reportedly secured a no-objection certificate from the Central Bank of the UAE. The approval opens the door for DDSC to partner with exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority (VARA). Developed through a collaboration among International Holding Company (IHC), First Abu Dhabi Bank and Sirius International Holding, the stablecoin is moving out of institutional testing and into the consumer market.

Under the central bank’s Payment Token Services Regulation, the federal institution holds sole authority over payment tokens to protect the national currency and limit financial risk. The certificate acts as a mandatory regulatory bridge: While local entities like VARA license Dubai-based exchanges, those platforms cannot legally list or convert local-currency stablecoins without federal clearance.

The certificate confirms that DDSC has met the central bank’s compliance, asset-backing and operational standards. By granting the clearance, the central bank allows approved VARA exchanges to host and trade the token, transitioning DDSC from a private corporate network into public retail channels.

Pegged 1-to-1 to the UAE dirham and running on the ADI blockchain, DDSC is positioned as a local alternative to U.S. dollar-denominated stablecoins, which command more than 90% of the global digital asset market. By using local currency on a blockchain, businesses and consumers can bypass legacy banking corridors, avoiding payment delays and transaction fees.

The platform enables peer-to-peer transfers, merchant payouts and supplier invoices to settle instantly in dirhams. The transition to retail exchanges follows an institutional trial in which DDSC processed more than $40 million (150 million dirhams), in transactions to test its stability and capacity.

“This approval represents another important milestone in the development of the UAE’s regulated digital financial ecosystem,” said Syed Basar Shueb, CEO of IHC.

The approval reflects the UAE’s multi-jurisdictional framework. At the federal level, the central bank regulates stablecoins, while the Capital Market Authority oversees investment-related virtual asset service providers. This regulatory boundary is designed to transition the local digital asset market from speculative trading toward real-world utility.