Shariah-Compliant PUSD Stablecoin Integrates With ADI Chain | Crypto ETF News
Crypto ETF news: Shariah-Compliant PUSD Stablecoin Integrates With ADI Chain. This update explains what changed, why it matters for institutional adoption, market flows, and investor sentiment, and what the crypto market should watch next.
Institutional And ETF Update
PUSD, a Shariah-compliant stablecoin backed by Gulf currencies, is set to deploy on ADI Chain, a Layer 2 network focused on institutional settlement in the Middle East.According to an announcement shared with Cointelegraph, the stablecoin has about $2.3 billion in circulation and is backed 1:1 by reserves held in Saudi riyals and UAE dirhams, which are pegged to the US dollar. It is already available on multiple blockchains, 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 represent more than $3 trillion in assets globally, according to the announcement from the ADI Foundation.ADI Chain is the settlement layer for a dirham-backed stablecoin initiated by International Holding Company and First Abu Dhabi Bank and licensed by the Central Bank of the UAE, according to the announcement.The addition of PUSD introduces a second stablecoin to the network, allowing 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 support settlement across corridors linking the Gulf, the Middle East and parts of Africa. PUSD is issued by Palm Azgar Finance and is designed for institutional use, including corporate treasuries, exchanges and payment processors.Related: Here’s why crypto is moving to Dubai and Abu DhabiUAE builds out stablecoin frameworkThe United Arab Emirates has developed a multi-layered regulatory framework for digital assets, with authorities including the Central Bank of the UAE and Abu Dhabi Global Market (ADGM) establishing rules for stablecoins and virtual asset providers. Within that framework, dirham-pegged payment tokens are being explored as a way to modernize domestic payments and improve cross-border settlement.In December, UAE telecom giant e& signed an agreement with Al Maryah Community Bank to test a dirham-pegged stablecoin licensed by the UAE central bank for consumer payments across its digital platforms in an early-stage pilot.The following month, RAKBank received in-principle approval from the central bank to issue a dirham-backed stablecoin, with the planned token expected to be fully backed 1:1 by reserves held in regulated accounts. The approval is subject to final regulatory and operational conditions before any live issuance.The push has also expanded to dollar-denominated tokens operating under local rules. In January, Universal Digital launched USDU, a US dollar-backed stablecoin registered by the UAE central bank under its Payment Token Services Regulation, making it the first dollar-denominated token approved for payment use within the framework.Separately, the Financial Services Regulatory Authority has granted approvals to several crypto firms, including Tether (USDT), Ripple USD and Circle, to operate inside the ADGM’s financial zone.Magazine: Will the CLARITY Act be good — or bad — for DeFi?Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Why This ETF News Matters
First, this development may affect institutional demand, exchange flows, market liquidity, and broader investor confidence. In addition, it may influence custody trends, fund positioning, and future crypto product approvals. As a result, traders and investors should watch the next moves closely.
What To Watch Next
Watch for filing updates, approval decisions, inflow and outflow data, custody changes, and asset manager commentary. In particular, any new developments involving BlackRock, Grayscale, Fidelity, or major spot ETF products could directly affect the broader crypto market.
