UAE Telecom Giant e& Launches Regulated Dirham Stablecoin Pilot with Mbank

The UAE's leading telecom provider, e&, has announced a pilot program in collaboration with Al Maryah Community Bank (Mbank) to explore the use of AE Coin, a dirham-backed stablecoin, for everyday consumer payments. The initiative aims to integrate AE Coin into e&'s digital ecosystem, enabling customers to pay bills, recharge accounts, and conduct transactions using a regulated stablecoin. This move marks a significant step in the UAE's broader strategy to develop a digital economy and promote blockchain-based payment solutions.

AE Coin is the first Central Bank-licensed, fully reserved, AED-backed payment token in the UAE. It will be integrated into e&'s advanced digital-payment infrastructure, supporting instant, secure, and regulated blockchain-powered transactions for mobile and home service bill payments, prepaid and postpaid recharges, and future e-commerce touchpoints. The partnership between e& and Mbank is expected to expand the real-world utility of compliant virtual assets and accelerate the adoption of stablecoin-based payments.

Leadership from both e& and Mbank emphasized the importance of the initiative, describing it as a transformative development for the UAE's digital-payment landscape. Hatem Dowidar, Group CEO of e&, stated that AE Coin will set a new standard for regulated digital finance, offering instant settlement, transparency, and frictionless access for customers.

Meanwhile, Ramez Rafeek of AED Stablecoin LLC highlighted the potential for AE Coin to serve as a benchmark for integrating licensed stablecoins into essential consumer services.

A Regulated Push for Digital Finance

The UAE has been proactive in fostering a regulatory environment conducive to digital assets and blockchain innovation. Authorities such as Dubai's VARA and ADGM have established clear frameworks to support the development and adoption of digital currencies. This partnership is part of the UAE's broader Digital Economy Strategy, which seeks to position the country as a global leader in financial technology and regulated virtual-asset innovation.

AE Coin's integration into e&'s ecosystem represents a major milestone in the adoption of regulated stablecoins. By embedding AE Coin into one of the country's most widely used consumer platforms, the initiative could pave the way for broader use cases in retail, government services, and digital commerce. The stablecoin's full reserve structure, backed by the UAE dirham, ensures compliance with regulatory requirements and financial stability.

The collaboration with Mbank also aligns with the UAE Central Bank's Payment Token Service Regulation framework. This regulatory backing is a key differentiator for AE Coin, as it ensures the token is subject to anti-money laundering (AML) checks and periodic audits to maintain its peg to the dirham. This level of oversight distinguishes AE Coin from other, unregulated stablecoins and supports its use in mainstream consumer applications according to industry experts.

Broader Implications for the UAE's Financial Ecosystem

The AE Coin initiative is one of several developments in the UAE's growing stablecoin landscape. Other projects, such as the dirham-backed stablecoin being developed by First Abu Dhabi Bank (FAB), ADQ, and International Holding Company (IHC), demonstrate the national priority of integrating digital assets into everyday economic activity. These efforts are part of a larger push to digitize financial transactions and reduce reliance on traditional banking systems.

The UAE's regulatory clarity has also attracted international crypto players to the region. Tether recently launched a dirham-pegged stablecoin in collaboration with Phoenix Group and Green Acorn Investments, aiming to bolster the regional digital economy through regulatory compliance with the UAE Central Bank. Additionally, crypto exchanges like OKX have expanded their services in the UAE, offering dirham-denominated trading and local bank integrations to attract institutional and retail investors.

The partnership between e& and Mbank is a clear signal that the UAE is positioning itself as a global hub for blockchain innovation. By leveraging AE Coin's regulated framework and integrating it into a large consumer base, the country is demonstrating how digital assets can be safely and efficiently embedded into daily life. This approach could influence similar initiatives in other markets and set a precedent for the global adoption of stablecoin-based payments.