he recent signing of the Genius Act by President Donald Trump is expected to significantly boost the market of the stablecoin throughout the globe, including the AED stablecoin. It is said to be a landmark move that could reshape the future of digital finance.
The regulatory framework of the UAE for AED-backed stablecoin is already in place. Now, experts believe these similar developments are going to motivate users to explore the crypto assets more safely with greater confidence.
Stablecoins Get Legal Boost: Why It Matters
The Genius Act introduces a clear regulatory framework for dollar-pegged cryptocurrency known as stablecoins. It has been widely welcomed as an important step to bring structure and security to an old, unstable segment of the crypto world.
CoinGecko highlighted that the latest global market of the stablecoin is pegged at $260 billion (Dh954 billion). Moreover, experts forecast that the estimated figure could soar to $2 trillion (Dh7.3 trillion) by 2028.
Experts said, “It is a change from the speculated chaos that we saw in 2009”. It highlighted how new regulations open the doors for mainstream usage of digital assets. Including daily transactions and cross-border payments.
UAE’s Strategic Move: AED Stablecoins
The US is currently focusing on the dominance of the US dollar. However, the UAE has taken a forward-thinking approach by creating its own stablecoin to empower financial sovereignty.
Meera Judge, Director of Regulatory Licensing and Policy at Binance, said, “The AED-backed stablecoin is a clear signal of the UAE to a regulated and innovative crypto ecosystem.” So, it is not only about matching the world pace. Still, it is related to creating the standards.
AE coin was developed in December 2024 under the Central Bank of the UAE’s digital payment token framework with received its final license. It provides you with an instant, secure, and low-cost digital payment that marks a significant milestone for the crypto sector in the UAE.
Trust, Transparency & Adoption
Experts confirmed that regulations are the basis of mass adoption. Therefore, Meera Judge adds, “When people feel safe, they are more likely to participate. Clear rules develop room for innovation – that is where we see real adoption start to take shape.”
The US and the UAE are boosting the environment that motivates hesitant users to diversify their finances using stablecoin and DeFi (Decentralized Finance) platforms by aiming for clear and customer protection.
Local Currency, Global Impact
Stablecoin is developed to maintain a constant value. Therefore, developing an AED-pegged option means breaking away from the complete reliance on the USD-backed digital assets for the UAE. So, it is important for the long-term financial independence and regional growth of the country.
According to the Judge, local flat stablecoin helps manage the financial tools to regional needs. They support local businesses and customers to boost financial inclusion. It helps to create a resilient and multi-currency crypto ecosystem. This system makes digital assets more relevant to the world.
Comparative Insights: US vs UAE Approach
Gracy Chen, CEO of Bitget, said, “The UAE’s stablecoin (effective from June 2025) focuses on local currency stability and central oversight by the Central Bank in the UAE. On the flip side, the US Genius Act supports USD-Pegged stablecoins through the federal-state framework.”
She further includes that the UAE’s commitment to the regional trade and sovereignty is compared to the USD approach of the US. She explained that non-USD stablecoin, like the AE coin, could reduce its dependency on the dollar and boost the regional commerce. In addition, it could also attract users from and across the MENA (Middle East and North Africa).
Banking on Blockchain: Institutional Entry
The entry of the significant banks into the stablecoin market is another development that empowers the confidence of the users. The US banks, like JPMorgan, Bank of America, Citigroup, and Wells Fargo, are launching the digital tokens. On the other hand, banks in the UAE, like FAB, MBank, and Zand Bank, are also making strategic moves.
Chen highlighted that these banks will bring legitimacy and liquidity with acceleration in adoption and trading volumes on the crypto exchange. However, she also alerted that increasing compliance could result in market concentration with the restriction of the smaller projects and innovation.
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