DDSC Approved for VARA Exchanges in UAE

DDSC Receives Central Bank Approval for VARA Exchange Access – Regulated Dirham Stablecoin Expands in UAE

Key Takeaways

• DDSC, a UAE dirham-backed stablecoin, has received approval from the Central Bank of the UAE to partner with selected VARA-regulated exchange platforms.
• The token is issued on ADI Chain and is pegged 1:1 to the UAE dirham.
• Since launch, more than AED 150 million in DDSC transactions have been processed, including an AED 110 million transaction in May 2026.
• The approval connects the Central Bank payment token framework with exchange access through Dubai’s Virtual Assets Regulatory Authority.
• Stablecoins accounted for around 30 percent of all on-chain crypto transaction volume in 2025, according to TRM Labs.

Central Bank Approval Enables Exchange Distribution

On July 3, 2026, DDSC received approval from the Central Bank of the UAE to partner with selected exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority, known as VARA. The decision provides a regulated route for users to access, buy, and redeem the dirham-backed stablecoin through compliant exchange channels.

DDSC was developed by International Holding Company, First Abu Dhabi Bank, and Sirius International Holding. The stablecoin is pegged 1:1 to the UAE dirham and issued on ADI Chain. Every transaction on ADI Chain requires the use of ADI for gas fees.

The approval links two parts of the UAE’s regulatory structure. The Central Bank oversees payment token services under its Payment Token Services Regulation, which covers issuance, conversion, custody, and transfer. VARA maintains a public register of licensed Virtual Asset Service Providers in Dubai and authorizes activities such as exchange services, broker dealer services, custody, lending, and investment management. DDSC now connects these frameworks by combining Central Bank oversight with exchange access through selected VARA-regulated platforms.

Stablecoins Represent a Major Share of Crypto Activity

The approval comes as stablecoins continue to dominate digital asset transaction flows. Visa’s stablecoin analytics dashboard showed more than 51 trillion US dollars in total stablecoin transaction volume over the past 12 months. TRM Labs estimated that stablecoins accounted for 30 percent of all on-chain crypto transaction volume in 2025. According to that estimate, nearly one third of tracked crypto value movement was tied to stablecoins, with Bitcoin and other altcoins making up the remaining share.

In the UAE specifically, Chainalysis estimated that the country received more than 56 billion US dollars in crypto value between 2024 and 2025, marking a 33 percent year over year increase. Institutional transfers represented a significant portion of this activity, while merchant services expanded across smaller retail transaction sizes.

Within this context, DDSC introduces a local currency stablecoin to a market where most liquidity remains denominated in US dollars. While dollar-pegged assets dominate global crypto trading and settlement, everyday obligations in the UAE are priced in dirhams. DDSC provides a digital asset denominated in AED rather than requiring conversion into dollar units.

Institutional Settlement Preceded Exchange Rollout

DDSC initially focused on institutional use. Since its launch, International Holding Company stated that more than AED 150 million in transactions have been processed using the stablecoin. In May 2026, IHC executed an AED 110 million DDSC transaction on ADI Chain, described as one of the region’s largest disclosed stablecoin transactions.

These transactions demonstrated the token’s capacity for high value settlement. The latest approval adds a distribution layer by allowing access through selected VARA-regulated exchange platforms. This creates a regulated pathway for individuals, merchants, and businesses to acquire and redeem DDSC.

For users evaluating crypto platforms, this means that access to a dirham-backed stablecoin is tied to licensed exchanges operating under VARA supervision. Exchange availability plays a central role in how stablecoins move from treasury or institutional settlement into broader commercial use.

Regulatory Structure and Compliance Controls

VARA oversees virtual asset activity in and from Dubai, excluding the Dubai International Financial Centre. Its public register lists licensed Virtual Asset Service Providers and specifies which activities each provider may offer.

By limiting DDSC distribution to selected VARA-regulated platforms, the rollout remains aligned with the UAE’s compliance framework. Stablecoin payments involve redemption processes, custody arrangements, anti money laundering controls, and user access requirements. Exchange-based distribution places these functions within a structure that already operates under regulatory supervision.

The UAE regulatory approach distinguishes between general crypto assets such as Bitcoin or Ethereum and regulated payment tokens designed for settlement and value transfer. DDSC falls into the latter category, structured around price stability, redemption, and payment use cases rather than trading volatility.

Implications for Merchant and Business Payments

According to International Holding Company, DDSC is designed to support everyday payments once available through selected regulated platforms. Potential use cases include shoppers paying merchants, businesses settling invoices with suppliers, and transfers between individuals.

Because DDSC is denominated in AED, it aligns with local pricing and accounting practices. A merchant that accepts a dollar-backed stablecoin may still need to manage currency conversion and related accounting processes. A dirham-backed token keeps settlement in the same currency as pricing and invoicing.

For businesses, stablecoin settlement can operate on a 24 hour basis and is not limited by traditional banking hours. At the same time, regulated issuance and exchange access aim to maintain redemption confidence and compliance with financial oversight requirements.

Our Assessment

DDSC’s approval by the Central Bank of the UAE to partner with selected VARA-regulated exchanges establishes a regulated distribution channel for a dirham-backed stablecoin. The token has already been used for high value institutional transactions totaling more than AED 150 million. By combining Central Bank oversight with exchange access under VARA supervision, DDSC integrates into the UAE’s existing payment token and virtual asset regulatory frameworks while introducing a local currency option into on-chain settlement.