PUSD stablecoin joins ADI Chain, locking in the $3 trillion Islamic finance market

According to a report by Cointelegraph on April 23, citing an announcement from the ADI Foundation, the Sharia-compliant stablecoin PUSD issued by Palm Azgar Finance has completed its deployment on ADI Chain, becoming the second stablecoin on this Ethereum Layer 2 network focused on institutional settlement in the Middle East. The PUSD circulating supply is approximately $2.3 billion.

PUSD Issuance Structure and Multi-Chain Deployment

According to the ADI Foundation’s announcement, PUSD is issued by Palm Azgar Finance, primarily targeting institutional users, including corporate treasury departments, exchanges, and payment processing institutions. The stablecoin is supported 1:1 by Saudi riyal and UAE dirham reserve assets, pegged to the US dollar, and has obtained Sharia compliance certification.

According to Cointelegraph’s report, PUSD has currently completed deployments on the following blockchains:

· Ethereum

· BNB Chain

· Solana

· Tron

· ADI Chain (latest integration)

ADI Chain’s Regulatory Foundation and Institutional Settlement Use Cases

According to the ADI Foundation’s announcement, ADI Chain was initiated by International Holding Company (IHC) and First Abu Dhabi Bank (FAB), as an institutional settlement layer for dirham-backed stablecoins, permitted by the Central Bank of the UAE.

The addition of PUSD enables ADI Chain to support both US dollar-denominated and dirham-denominated stablecoins, allowing institutions to settle trades of different currencies on the same underlying infrastructure. Per the announcement, transaction fees on ADI Chain are paid using the platform’s native token.

UAE Stablecoin Regulatory Ecosystem: Key Recent Developments

The UAE has built a multi-layer digital asset regulatory framework, with rules for stablecoins and virtual asset service providers set by the Central Bank of the UAE and the Abu Dhabi Global Market (ADGM), respectively. Key recent regulatory developments are as follows:

December 2025: e& (UAE telecom giant) and Al Maryah Community Bank signed an agreement to test a Central Bank of the UAE-authorized dirham-pegged stablecoin on a digital platform; it is currently in a pilot stage

January 2026: RAKBank received in-principle approval from the Central Bank of the UAE to issue a dirham-backed stablecoin; this approval must meet final regulatory and operational conditions before issuance can be正式 carried out

January 2026: Universal Digital launched USDU, becoming the first US dollar-denominated stablecoin approved for payment under the Central Bank of the UAE’s payment token service regulations

The Financial Services Regulatory Authority (FSRA) has approved Tether (USDT), Ripple USD, and Circle to operate within the ADGM financial free zone.

Frequently Asked Questions

Who is the issuer of the PUSD stablecoin, and what assets provide the backing?

According to the ADI Foundation’s announcement, PUSD is issued by Palm Azgar Finance, supported 1:1 by Saudi riyal and UAE dirham reserve assets, pegged to the US dollar, with a circulating supply of approximately $2.3 billion. It has also obtained Sharia compliance certification, and mainly serves institutional users such as corporate treasury departments, exchanges, and payment processing institutions.

What is ADI Chain, and which institutions initiated it?

According to the ADI Foundation’s announcement, ADI Chain is an Ethereum Layer 2 network focused on institutional settlement in the Middle East, initiated by International Holding Company (IHC) and First Abu Dhabi Bank (FAB). It also serves as a settlement layer for dirham-pegged stablecoins permitted by the Central Bank of the UAE.

Under the Central Bank of the UAE framework, which stablecoins are currently approved?

According to related announcements, under the Central Bank of the UAE framework, Universal Digital’s USDU (US dollar stablecoin) is approved for payments, RAKBank’s dirham stablecoin has received in-principle approval, and the Financial Services Regulatory Authority (FSRA) has also approved Tether (USDT), Ripple USD, and Circle to operate within the ADGM financial free zone.