PUSD, a Shariah-compliant stablecoin backed by Gulf currencies, has deployed on ADI Chain, a Layer 2 network licensed by the Central Bank of the UAE and focused on institutional settlement across the Middle East. The stablecoin carries roughly $2.3 billion in circulation and is backed 1:1 by reserves held in Saudi riyals and UAE dirhams, both of which are pegged to the US dollar. The integration positions PUSD to tap into the global Islamic finance market, which represents more than $3 trillion in assets.
A Second Stablecoin on a Bank-Backed Network
ADI Chain is the settlement layer for a dirham-backed stablecoin initiated by International Holding Company and First Abu Dhabi Bank, licensed by the Central Bank of the UAE. PUSD’s arrival gives the network a second stablecoin, allowing institutions to settle transactions in either a dollar-linked asset or a dirham-denominated token on the same infrastructure.
Transactions on ADI Chain require the network’s native token for fees. The settlement layer is built to support corridors linking the Gulf, the broader Middle East, and parts of Africa. PUSD itself is issued by Palm Azgar Finance and is aimed at corporate treasuries, exchanges, and payment processors rather than retail users.
PUSD at a Glance
The stablecoin’s structure is built around institutional settlement use cases, with reserve backing tied to two Gulf currencies that maintain dollar pegs.
| Specification | Detail |
|---|---|
| Circulating supply | $2.3 billion |
| Backing | 1:1 reserves in Saudi riyals and UAE dirhams, pegged to US dollar |
| Issuer | Palm Azgar Finance |
| Compliance | Shariah-compliant, designed for institutional use |
| Supported chains | Ethereum, BNB Chain, Solana, Tron, and now ADI Chain |
| Target market | $3 trillion global Islamic finance assets |
UAE’s Stablecoin Framework Keeps Filling Out
The United Arab Emirates has been building a multi-layered regulatory framework for digital assets through the Central Bank of the UAE and the Abu Dhabi Global Market. Dirham-pegged payment tokens are part of a wider push to modernize domestic payments and upgrade cross-border settlement.
In December, UAE telecom group e& signed an agreement with Al Maryah Community Bank to test a dirham-pegged stablecoin for consumer payments. The following month, RAKBank received in-principle approval from the central bank to issue a dirham-backed stablecoin, pending final regulatory and operational conditions. In January, Universal Digital launched USDU, the first US dollar-backed stablecoin registered by the UAE central bank under its Payment Token Services Regulation.
Separately, the Financial Services Regulatory Authority has granted approvals to Tether, Ripple for RLUSD, and Circle to operate inside the ADGM’s financial zone. PUSD’s ADI Chain deployment adds another layer to an already dense institutional stablecoin landscape in the region, one where Western issuers, Gulf-currency tokens, and Shariah-compliant instruments are increasingly sharing the same regulatory perimeter.
Why the Islamic Finance Angle Matters
The $3 trillion Islamic finance market has historically sat outside most crypto infrastructure, partly because conventional stablecoins are built around interest-bearing reserve structures that do not align with Shariah principles. A stablecoin whose reserve and issuance structure is certified as compliant removes one of the primary barriers for banks, funds, and payment providers operating under Islamic finance rules.
PUSD’s expansion to a UAE-licensed chain concentrates that opportunity on infrastructure where the regulatory posture is already defined. For institutions operating across the Gulf, the Middle East, and Africa, the combination of a compliant stablecoin and a bank-backed settlement layer removes two of the recurring friction points in cross-border digital asset settlement at once.
