Gulf-backed PUSD stablecoin launches on ADI Chain
PUSD, Shariah-compliant and backed 1:1 by Saudi riyals and UAE dirhams with about $2.3 billion circulating, has launched on ADI Chain to access the $3 trillion Islamic finance market.
PUSD, a Shariah-compliant stablecoin issued by Palm Azgar Finance, has been deployed on ADI Chain, a Layer 2 network built for institutional settlement in the Middle East. The token is backed 1:1 by reserves held in Saudi riyals and UAE dirhams and has roughly $2.3 billion in circulation.
The token was already available on Ethereum, BNB Chain, Solana and Tron. ADI Chain is the latest integration and provides an alternative settlement layer for institutions operating in the Gulf and wider region.
ADI Chain serves as the settlement layer for a dirham-backed stablecoin developed by International Holding Company and First Abu Dhabi Bank and licensed by the Central Bank of the UAE. The addition of PUSD introduces a second stablecoin on the network and allows institutions to settle transactions using either a dollar-linked asset or a dirham-denominated token on the same infrastructure.
Transactions on ADI Chain require the network’s native token to pay fees. The chain is designed to support settlement across corridors linking the Gulf, other parts of the Middle East and parts of Africa. PUSD is positioned for institutional use, including corporate treasuries, exchanges and payment processors.
PUSD’s reserves are held in riyals and dirhams, currencies pegged to the U.S. dollar. The token’s structure is intended to meet institutional custody and reserve-auditing expectations.
The deployment comes as the UAE develops a multi-layered regulatory framework for digital assets. The Central Bank of the UAE and Abu Dhabi Global Market have issued rules for stablecoins and virtual asset providers.
Recent initiatives in the UAE include a telecom operator testing a central-bank-licensed dirham-pegged stablecoin with a local bank, RAKBank receiving in-principle approval to issue a dirham-backed token subject to final conditions, and the launch of a U.S. dollar-backed token registered under the country’s Payment Token Services Regulation. The Financial Services Regulatory Authority has authorized several dollar-denominated stablecoin operators to work within ADGM.
An ADI Foundation statement described the network’s objective as improving cross-border efficiency and providing on-chain instruments that align with local regulatory and payment requirements.
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