As the global cryptocurrency market experiences a surge, investors in the UAE are increasingly turning to stablecoins, which now make up more than half of the region’s crypto activity. While Bitcoin’s remarkable climb to $75,000 has captured global attention, UAE investors are appreciating the stability that stablecoins offer amidst market fluctuations and political uncertainties.
In the first half of 2024, the United Arab Emirates recorded over $9.8 billion in stablecoin transactions, reflecting a notable 55% increase compared to the previous year. Retail investors—those making transfers under $10,000—accounted for 93% of stablecoin volume, highlighting the asset’s appeal to individuals seeking secure and accessible cryptocurrency options. In contrast, larger transactions, ranging from professional-sized ($10k–$1 million) to institutional-sized (over $10 million), represented the bulk of stablecoin-backed values in the UAE.
“Retail investors in the UAE are increasingly utilizing stablecoins to trade and preserve value within the crypto ecosystem,” a source noted. “Stablecoins provide a cushion against the volatility of other assets, making them an attractive, stable entry point for newer investors.”
The rise of stablecoins in the UAE is supported by a favorable regulatory environment, which offers a clear framework for trading and managing digital assets. The Central Bank of the UAE (CBUAE) recently rolled out its Payment Token Services Regulation, clarifying the guidelines for the management, issuance, and conversion of payment tokens. This regulatory clarity is anticipated to further enhance stablecoin adoption, encouraging wider participation from both retail and institutional investors.
With stablecoins now accounting for 51% of crypto transactions in the UAE—outpacing Bitcoin’s 19% and Ether’s 9%—analysts predict that stablecoins will continue to be a key player in the UAE’s cryptocurrency landscape, appealing to both cautious new investors and large institutions in search of secure digital assets.
