UAE moves to regulated, large-scale blockchain deployment

By Vriti Gothi

The United Arab Emirates (UAE) has moved from blockchain experimentation to regulated, large-scale implementation across its financial and public sectors, according to new research published by The Blockchain Center Abu Dhabi in collaboration with Binance.

The report argues that the country has entered an “execution phase” defined by institutional participation, regulatory clarity, and live production use cases. It attributes this transition to the UAE’s layered supervisory framework, which has enabled blockchain applications in payments, tokenisation, custody, and digital asset market infrastructure to develop within formal regulatory boundaries.

Stablecoins approved by the Dubai Financial Services Authority and the Financial Services Regulatory Authority are already operational, while a central bank digital currency pilot has executed initial transactions. Real-world asset tokenisation projects are also progressing, with initiatives targeting up to $4 billion in real estate assets.

The findings place these developments within the broader scale of the UAE’s payments ecosystem. Domestic payment systems processed more than AED 20 trillion in transfers during the first ten months of 2025, and cross-border flows linked to the UAE economy exceed $40 billion annually. The report notes that 95% of residents send international remittances at least once a year and that over 71% of eCommerce payments are completed via cards or mobile wallets, conditions it describes as conducive to blockchain-based settlement infrastructure.

Digital public infrastructure is also cited as a foundation for deployment. UAE Pass, the national digital identity platform, serves 11 million users and has recorded more than 2.5 billion authentications, integrating blockchain-compatible systems into government and private-sector services.

Abdulla Al Dhaheri, CEO of The Blockchain Center Abu Dhabi, said the UAE has established a coordinated environment in which regulators, financial institutions, and technology providers can deploy blockchain “in a controlled and meaningful way.” He described the shift as a move from experimentation toward supervised, production-grade implementation.

The report further documents a structural evolution in the domestic blockchain ecosystem. What began as a startup-driven landscape has expanded to include regulated exchanges and custodians, tokenisation platforms, payment providers, infrastructure vendors, banks, and multinational technology firms. It also highlights the role of sovereign and quasi-sovereign capital—collectively managing more than $2.5 trillion in assets as a potential catalyst for scaling compliant blockchain initiatives.

Binance’s participation reflects its regulated presence in Abu Dhabi Global Market under the Financial Services Regulatory Authority. The report references a $2 billion investment by MGX into Binance in 2025, executed using regulated stablecoin infrastructure, as an example of institutional capital engaging within the UAE’s supervised digital asset framework.

Tarik Erk, Regional Head for MENAT and Senior Executive Officer, Abu Dhabi at Binance, said the UAE distinguishes itself through “execution within a regulated, institutional-grade framework,” with blockchain now embedded across payments, tokenisation, custody, and market infrastructure.

The research positions the UAE as a potential benchmark for jurisdictions seeking to integrate blockchain into formal financial systems. By aligning regulatory design with live deployment at scale, the country is seeking to shift blockchain from speculative innovation to core economic infrastructure—an approach that could influence digital asset policy and implementation strategies globally.