PUSD, a Shariah-compliant stablecoin backed by Gulf currencies, is set to deploy on ADI Chain, a Layer 2 blockchain focused on institutional settlement across the Middle East. The move reflects growing efforts to integrate digital assets into Islamic finance and expand access to Shariah-compliant financial solutions.
According to Cointelegraph, PUSD currently has around $2.3 billion in circulation and is fully backed 1:1 by reserves held in Saudi riyals and UAE dirhams, both of which are pegged to the US dollar. The stablecoin is already available on major blockchain networks, including Ethereum, BNB Chain, Solana and Tron, with ADI Chain marking its latest integration.
The stablecoin is positioned to provide access to Islamic finance markets, which account for more than $3 trillion in global assets. According to the ADI Foundation, this integration is expected to strengthen financial connectivity and support the growth of Shariah-compliant financial ecosystems.
ADI Chain serves as the settlement layer for a dirham-backed stablecoin initiative led by International Holding Company and First Abu Dhabi Bank, operating under the supervision of the Central Bank of the UAE. With the addition of PUSD, the network now supports two stablecoins, enabling institutions to settle transactions using either a dollar-linked asset or a dirham-denominated token on the same infrastructure.
Transactions on the network require its native token for fees and are expected to facilitate cross-border settlements across the Gulf region, the broader Middle East, and parts of Africa. PUSD is issued by Palm Azgar Finance and is designed primarily for institutional use, including corporate treasuries, exchanges, and payment processors.
The United Arab Emirates has been actively developing a comprehensive regulatory framework for digital assets. Authorities such as the Central Bank and Abu Dhabi Global Market have introduced rules governing stablecoins and virtual asset providers, aiming to support innovation while ensuring financial stability.
Recent developments highlight the country’s push in this space. Telecom company e& has partnered with Al Maryah Community Bank to pilot a dirham-pegged stablecoin for consumer payments across its platforms. Meanwhile, RAKBank has received in-principle approval to issue its own dirham-backed stablecoin, subject to final regulatory conditions.
The expansion also includes dollar-denominated tokens operating under local regulations. In January, Universal Digital launched USDU, a US dollar-backed stablecoin approved under the UAE’s Payment Token Services Regulation. Additionally, the Financial Services Regulatory Authority has granted approvals to crypto firms such as Tether, Ripple and Circle to operate within ADGM’s financial zone.
These developments underscore the UAE’s growing position as a hub for regulated digital finance, with stablecoins playing a key role in modernizing payments and improving cross-border transactions.