Shariah-compliant PUSD launches on ADI Chain

PUSD, a Shariah-compliant stablecoin issued by Palm Azgar Finance, has launched on ADI Chain, a Layer 2 settlement network for institutional payments in the Middle East. The token has about $2.3 billion in circulation and is backed 1:1 by reserves held in Saudi riyals and UAE dirhams.

The stablecoin is already available on Ethereum, BNB Chain, Solana and Tron. Palm Azgar Finance markets PUSD for institutional users such as corporate treasuries, exchanges and payment processors. Reserves are held in national currencies that are pegged to the U.S. dollar and maintained at a one-to-one backing ratio.

ADI Chain is a settlement layer that supports a dirham-backed stablecoin developed by International Holding Company and First Abu Dhabi Bank and licensed by the Central Bank of the UAE. Transactions on ADI Chain require the network’s native token to pay fees. The network is designed to support settlement corridors linking the Gulf, the broader Middle East and parts of Africa.

With PUSD on ADI Chain, institutions can access a dirham-denominated token alongside dollar-linked assets on the same settlement layer. The ADI Foundation announced the integration and said the addition aims to provide access to Islamic finance markets, which account for more than $3 trillion in assets globally.

The UAE has published rules for stablecoins and virtual asset service providers through authorities including the Central Bank of the UAE and Abu Dhabi Global Market. Recent initiatives include a pilot by telecom operator e& with Al Maryah Community Bank to test a dirham-pegged stablecoin licensed by the central bank for consumer payments, and an in-principle approval for RAKBank to issue a dirham-backed stablecoin subject to final conditions.

Regulatory work has extended to dollar-denominated tokens. A U.S. dollar-backed token has been registered under the UAE’s Payment Token Services Regulation for payment use, and the Financial Services Regulatory Authority within Abu Dhabi’s financial zone has granted permissions to multiple firms to operate under local rules.

PUSD’s deployment on ADI Chain adds another on-chain option for settling transactions in Gulf currencies on infrastructure linked to UAE-backed payment initiatives.