The UAE's first regulated stablecoin AE Coin has received in-principle approval from the central bank

ChainCatcher news, according to Cointelegraph, the Central Bank of the UAE (CBUAE) has in principle approved the issuance license for the AED Stablecoin under its regulatory framework for payment token services. This makes the AED Stablecoin the first approved institution in the UAE to issue a stablecoin pegged to the dirham.

If final approval is granted, the AE Coin issued by AED Stablecoin will be available as a local trading pair for cryptocurrency transactions and will allow merchants to accept it for payment of goods and services.

The CBUAE's licensing framework requires stablecoin issuers to fully hold their assets in cash in a separate custodial account at a UAE bank, or to hold at least 50% of their reserve assets in cash, with the remaining portion allowed to be invested in UAE government bonds and CBUAE currency notes.