Zand Bank launches multi blockchain AED backed stablecoin

UAE Zand Bank, an AI enabled digital bank, that has been the go to bank for many UAE regulated VASPs, and is one of the first digital asset and crypto friendly bank has now stepped into the AED stablecoin arena with the launch of its Central Bank regulated, multi-chain AED backed stablecoin on public blockchains.

This is a divergence from the first regulated AED stablecoin, AE Coin issued by Mbank which was on their own proprietary blockchain network.

Zand AED, the multi public chain stablecoin aims to bring the Dirham into the global digital rails with the security of a regulated bank and the speed and openness of blockchain.

As per the press release, Zand AED is fully backed one-to-one by AED reserves that are held in segregated and regulated accounts to ensure complete redemption value. It is supported by real-time transparency through independently audited smart contracts and reserve attestations. It is available across multiple public blockchains, enabling fast borderless settlement and seamless integration for developers, enterprises, and financial institutions.

The stablecoin is issued by Zand Trust, a wholly owned subsidiary of Zand Bank PJSC, which is licensed and supervised by the CBUAE, and is rated BBB+ by Fitch Ratings.

“Launching an AED-backed stablecoin on public blockchains is not simply a milestone for Zand. It is a breakthrough for the UAE,” said Mohamed Alabbar, Chairman of Zand. “This initiative carries our national currency into the digital future and reinforces the UAE’s position as a global leader in financial innovation.”

Michael Chan, CEO of Zand, added, “Zand AED is more than a stablecoin. It is the UAE’s bridge between traditional finance and decentralized finance. It unlocks the next generation of payments, tokenization, and digital asset innovation. All of it is built on trust, transparency, and regulatory clarity.”

This comes a week after the UAE piloted its Digital Dirham CBDC between governmental entities, as it prepares for the official launch at the end of 2025.

The question still remains why Tether has still not been able to launch its regulated AED stablecoin, which it was working on with the collaboration of Phoenix Group.