The UAE's first regulated stablecoin AE Coin has received approval in principle from the central bank

ChainCatcher reported that according to Cointelegraph, the Central Bank of the United Arab Emirates (CBUAE) approved in principle the stablecoin issuance license of AED Stablecoin in accordance with its payment token service regulatory framework. This makes AED Stablecoin the first institution in the UAE to be approved to issue a stablecoin pegged to the dirham.

If finally approved, the AE Coin issued by AED Stablecoin will be available as a native trading pair for cryptocurrency transactions and allow merchants to accept it as payment for goods and services.

The CBUAE’s licensing framework requires stablecoin issuers to hold their assets entirely in cash in segregated custody accounts at UAE banks, or to hold at least 50% of reserve assets in cash, with the remainder invested in UAE government bonds and CBUAE currency notes.