Palm Azgar Finance is moving to deepen its presence in institutional crypto markets by deploying its Shariah compliant stablecoin PUSD on ADI Chain, a layer two blockchain designed for financial settlement across the Middle East. The integration introduces a second stablecoin to the network and signals growing demand for regulated digital assets tailored to Islamic finance principles. PUSD already has a circulating supply of about $2.3 billion and is backed one to one by reserves held in Saudi riyals and UAE dirhams, both of which maintain a fixed peg to the US dollar.
The addition of ADI Chain expands the blockchain footprint of PUSD, which is already available on Ethereum, BNB Chain, Solana and Tron. This latest integration is aimed at increasing institutional access and improving settlement efficiency for cross border transactions. ADI Chain was originally developed to support a dirham backed stablecoin initiative led by International Holding Company and First Abu Dhabi Bank. That project received licensing from the Central Bank of the UAE, allowing the network to operate within a regulated framework while supporting both dollar linked and dirham denominated digital assets.
PUSD has been specifically structured to align with Shariah financial guidelines, which prohibit interest based mechanisms and require asset backed structures. This positioning makes it attractive for institutions operating within Islamic finance systems that seek exposure to blockchain based settlement without violating compliance standards. According to industry estimates, global Islamic finance assets exceed $3 trillion, creating a significant market opportunity for digital currencies that meet religious and regulatory requirements. The stablecoin is primarily targeted at corporate treasuries, exchanges and payment processors rather than retail users, reflecting a clear institutional focus.
The broader infrastructure of ADI Chain is designed to facilitate payment corridors linking Gulf countries with wider regions including Africa and other parts of the Middle East. Transaction fees on the network are paid using its native token, enabling a self contained settlement ecosystem. The UAE has emerged as a major hub for digital asset innovation, supported by a multi layered regulatory environment that includes oversight from the Central Bank and Abu Dhabi Global Market. These frameworks provide clear guidelines for stablecoin issuance and virtual asset operations, encouraging financial institutions to enter the space.
Recent developments highlight the accelerating adoption of regulated digital currencies across the region. Telecom operator e and Al Maryah Community Bank have launched pilot programs for consumer focused dirham stablecoins, while RAKBank has secured initial approval to issue its own digital currency pending final conditions. Universal Digital introduced a dollar backed stablecoin under the UAE payment token regulations, marking a milestone for compliant digital payments. Meanwhile, regulatory approvals have also been granted to major global issuers operating within Abu Dhabi’s financial zone, reinforcing the UAE’s position as a leading center for stablecoin innovation and institutional blockchain adoption.
