UAE digital bank Zand plans to add support for USDC as it develops infrastructure connecting dirham- and dollar-denominated stablecoins. The proposed capability is intended to serve eligible businesses across payments, settlement, treasury management, trading and cross-border transactions.
Zand described the initiative as an expansion of its stablecoin infrastructure rather than a product already available to customers.
Under the plan, participating businesses could use USDC alongside Zand’s dirham-backed payment token, creating a route between digital representations of the United Arab Emirates dirham and the U.S. dollar.
Two Currencies, One Proposed Infrastructure Layer
USDC is designed to maintain a value of $1 and can be redeemed on a one-to-one basis for U.S. dollars, subject to Circle’s applicable terms. Circle says the token is backed by cash and highly liquid cash-equivalent assets.
Circle reported $73.3 billion of USDC in circulation at the end of the second quarter of 2026, an increase of 19% from a year earlier. On-chain transaction volume reached $14.8 trillion during the quarter, up 151% year over year.
Zand’s own token, known as the Zand Dirham stablecoin, is described by the bank as a multi-chain payment token backed one-to-one by reserves denominated in UAE dirhams. The bank announced its launch in November 2025, saying it had received approval from the Central Bank of the UAE. Combining access to a dirham token and USDC could give businesses another mechanism for moving value between domestic and international digital-asset systems.
The USDC plan follows Zand’s earlier expansion into blockchain infrastructure. In January, the bank integrated the XDC Network into its digital asset custody service, allowing corporate and institutional clients to custody assets supported by the network, subject to regulatory approval.
Regulation Shapes the Rollout
Stablecoin services in the UAE operate across several regulatory jurisdictions. The Central Bank’s Payment Token Services Regulation states that a person may not provide a payment-token service in or directed toward the UAE without being licensed or registered. The framework covers activities associated with issuing, converting, safeguarding and transferring payment tokens, making regulatory status central to how Zand structures the proposed offering.
Circle also has a regulated presence in the country. The company received Financial Services Permission from the Financial Services Regulatory Authority of Abu Dhabi Global Market in December 2025, authorizing it to operate as a money-services provider within the financial center.
The regulatory framework provides oversight for stablecoin services while setting requirements for providers operating in the UAE. Zand said its planned USDC support would remain subject to applicable laws and regulatory approvals.
Commercial Details Remain Open
Zand said potential use cases include corporate payments, treasury operations and settlement, areas in which businesses often manage transfers across different currencies and banking systems. A blockchain-based token may permit transactions outside conventional banking hours, but the practical advantages will depend on fees, redemption access, liquidity and the blockchain networks selected.
The bank’s institutional position has been assessed separately by Fitch Ratings. In June 2026, Fitch affirmed Zand’s long-term foreign-currency issuer default rating at BBB+, with a stable outlook.
Zand’s plans also sit within a wider government effort to increase digital activity across the UAE economy. The country’s Digital Economy Strategy seeks to double the digital economy’s contribution to gross domestic product from 9.7% to 19.4% over 10 years. Zand has linked its stablecoin initiative to that policy direction.
