The introduction of the Shariah-compliant stablecoin, PUSD, marks a significant expansion in the digital finance landscape, with approximately $2.3 billion in circulation. This stablecoin, which is backed 1:1 by reserves in Saudi riyals and UAE dirhams, will now operate on the ADI Chain, a Layer 2 network tailored for institutional settlements in the Middle East.
PUSD has been integrated into various blockchains, including Ethereum and Solana, and its presence on ADI Chain adds to the network's capabilities. The new integration facilitates transactions using either a dollar-linked asset or a dirham-denominated token, enhancing flexibility for institutions. The network, noted for its potential to support settlements across the Gulf and parts of Africa, requires the use of its native token for transaction fees.
This stablecoin is issued by Palm Azgar Finance and is specifically targeted at institutional clients, including corporate treasuries and payment processors. Additionally, the regulatory environment in the UAE is evolving, with the Central Bank and Abu Dhabi Global Market developing frameworks for stablecoins and digital asset providers to modernize payment systems.