Zand, an AI- and blockchain-powered digital bank in the United Arab Emirates, is expanding its stablecoin infrastructure with support for USDC, the dollar-backed stablecoin issued by regulated entities of Circle. The initiative is designed to give eligible businesses access to both USDC and Zand's Dirham-backed stablecoin for payments, settlement, treasury management, trading and cross-border transactions.

The expansion is intended to establish a regulated corridor between Zand's Dirham stablecoin and USDC, allowing eligible businesses to move value across digital financial ecosystems while operating within applicable UAE regulations. The announcement comes as financial institutions and businesses increasingly examine regulated stablecoins as tools for improving the movement of money between domestic and international markets. Stablecoins can provide blockchain-based settlement while maintaining a value linked to traditional currencies, potentially reducing friction in cross-border financial activity.

Zand's Dirham Stablecoin

Zand's Dirham stablecoin is described as the UAE's first fully regulated, multi-chain Dirham-backed stablecoin operating on public blockchains. The digital asset is backed on a one-to-one basis by Dirham reserves, providing a direct connection between the token and the UAE currency. Dirham-denominated payment tokens fall under the UAE central bank's Payment Token Services Regulation, issued in 2024, which requires such tokens to be fully backed by dirham reserves and places their issuers under central bank oversight.

The planned USDC support would add a dollar-denominated stablecoin to Zand's digital asset infrastructure. USDC is designed to be redeemable one-to-one for U.S. dollars, subject to its applicable terms, conditions and regulatory requirements, and ranks among the largest stablecoins by market capitalization. Together, the two tokens could allow businesses operating across different markets to use regulated stablecoin instruments for moving value — functionality that could be particularly relevant to companies handling international payments, corporate treasury operations and digital asset settlements.

Focus on Institutional and Cross-Border Use

Zand said the initiative is aimed at practical financial applications rather than solely cryptocurrency trading. Potential use cases include business payments, settlement activities, treasury operations, trading and international transfers.

The bank also said the infrastructure could support greater interoperability between domestic and international digital financial systems. This approach could allow businesses to use blockchain-based settlement mechanisms while remaining within established legal and regulatory frameworks.

Zand is backed by a group of regional and international investors and business leaders. The bank has also received a BBB+ rating from Fitch Ratings, according to the information provided.

Zand Chief Executive Michael Chan said the bank viewed its Dirham stablecoin as a way to improve connections between global financial markets. His comments indicated that the company sees faster movement of value as part of the UAE's broader effort to develop its digital economy and financial infrastructure.

Zand x @circle : Cross-border payments should move as fast as ideas. As demand grows for faster, more efficient global payments, Zand is expanding its stablecoin infrastructure capabilities with support for Circle's USDC alongside the Zand Dirham stablecoin, contributing to… pic.twitter.com/QAthAPqVVi

— Zand (@Official_Zand) August 25, 2026

Circle Managing Director for the Middle East, Turkey, Africa and Pakistan, Dr. Saeeda Jaffar, said the development reflected rising demand for regulated stablecoins that can support payments, settlement and treasury functions. She also pointed to interoperability between regulated stablecoins as a potential source of new opportunities for businesses operating internationally. Circle has been deepening its Gulf presence: the company listed on the New York Stock Exchange in June 2025 and, earlier that year, received in-principle approval from the Abu Dhabi Global Market's financial regulator to operate as a regulated issuer of fiat-backed stablecoins.

Stablecoin Market Enters Broader Adoption Phase

The move comes amid expectations of continued growth in the global stablecoin market. Industry forecasts cited in the announcement indicate that the market could surpass $1 trillion in 2026, supported by transaction demand, decentralized finance and increasing institutional participation. Those projections coincide with major jurisdictions formalizing stablecoin rules: the U.S. GENIUS Act, signed into law in July 2025, established federal reserve and disclosure requirements for payment stablecoin issuers, while the EU's Markets in Crypto-Assets framework began applying to stablecoin issuers in 2024.

For businesses, combining a regulated UAE Dirham stablecoin with USDC could provide a more flexible digital settlement framework for domestic and international transactions, subject to regulatory and market conditions.

The development also aligns with the UAE's efforts to expand its digital economy. The country's Digital Economy Strategy seeks to increase the digital economy's contribution to non-oil gross domestic product by 2032.

As regulated digital assets gain traction, interoperability is likely to become increasingly important. Zand's support for USDC could serve as an early example of how banks and stablecoin issuers can connect domestic currency-based digital assets with widely used dollar-denominated tokens.

The announcement did not specify a launch date or detailed eligibility criteria for the USDC support, leaving implementation timing and the scope of participating businesses among the practical details to watch. The initiative could strengthen the UAE's position as a regulated digital-asset hub by linking local stablecoin infrastructure with an established global dollar-based digital payment asset. Its long-term impact will depend on regulatory developments, business adoption, liquidity and the ability of such networks to deliver faster and more efficient financial settlement.

Source: CoinTrust