UAE's Zand Bank Integrates USDC, Plans Dirham-Pegged Stablecoin to Accelerate Cross-Border Payments

Zand Bank, a digital bank in the United Arab Emirates, has announced support for the USDC stablecoin and plans to issue a dirham-pegged stablecoin to enhance cross-border payment efficiency. According to the bank's announcement, customers can now use USDC for transfers and settlements, while the bank advances collaboration with regulators to ensure compliance. This move marks the latest example of Gulf banks embracing stablecoins, following the UAE central bank's earlier consultation on a stablecoin regulatory framework. Zand Bank stated that the dirham stablecoin will be used to reduce the cost and time of cross-border transactions, particularly in trade settlement and remittance scenarios. The bank currently holds a digital banking license from the UAE central bank, and its stablecoin initiative requires final approval. Analysts note that the rise of bank-issued stablecoins could reshape traditional correspondent banking clearing models, but compliance and anti-money laundering requirements remain critical to implementation.