Stablecoin activity in the UAE experienced significant growth through the first half of 2024, with value received by centralised and decentralised exchanges (CEXs and DEXs) totaling over $9.8 billion—a 55% rise compared to $6.3 billion during the same period in 2023. This surge underscores the UAE’s evolving position as a prominent crypto market, with stablecoins now constituting 51% of crypto activity in the nation, outpacing Bitcoin (19%) and Ether (9%).
Arushi Goel, Head of Middle East & Africa Policy at Chainalysis, attributed this growth to new regulations from the Central Bank of the UAE, clarifying guidelines for issuing and converting payment tokens. These regulations are expected to foster broader market participation and innovation.
While retail-sized transfers (under $10,000) accounted for 93% of transaction volume, they represented just 6% of the total value received. By contrast, professional-sized, institutional-sized, and large institutional-sized transfers made up the bulk of value received at 40%, 34%, and 20%, respectively, indicating robust interest from professional and institutional investors.
Goel noted that most stablecoin transfers occurred on centralised exchanges (78%), reflecting global trends and the use of stablecoins for business payments, remittances, and settlements. The popularity of dollar-pegged stablecoins like Tether (USDT) in the UAE further highlights their appeal, given the dirham’s peg to the US dollar. With the anticipated rollout of Dirham-backed stablecoins, new use cases such as eCommerce, real estate, and tokenised assets could emerge, promising further innovation within the UAE’s crypto ecosystem.
