## Green Crypto
### Harnessing Passive Rewards with Shariah-Compliant Stablecoins
The world of cryptocurrency is expanding its reach, and the latest development is set to make waves in the Islamic finance market. A new stablecoin, PUSD, is being deployed on the ADI Chain, a Layer-2 network focused on institutional settlement in the Middle East. This move is significant, as it opens up access to a vast market worth over $3 trillion. But what does this mean for the average person, and how does it contribute to a more sustainable digital economy?
The PUSD stablecoin is backed 1:1 by reserves held in Saudi riyals and UAE dirhams, and pegged to the US dollar. With approximately $2.3 billion in circulation, it’s already available on several blockchains, including Ethereum, BNB Chain, Solana, and Tron. The integration with ADI Chain marks a new chapter in its development, enabling institutions to settle transactions using either a dollar-linked asset or a dirham-denominated token on the same infrastructure.
The ADI Chain is a settlement layer for a dirham-backed stablecoin, licensed by the Central Bank of the UAE. The addition of PUSD introduces a second stablecoin to the network, providing more options for institutions to manage their transactions. This development is a step towards creating a more efficient and sustainable digital economy, as it reduces the need for multiple intermediaries and promotes faster settlement times.
The United Arab Emirates has been at the forefront of regulating digital assets, establishing a multi-layered framework that includes rules for stablecoins and virtual asset providers. This regulatory environment has encouraged innovation, with several companies exploring the use of dirham-pegged payment tokens to modernize domestic payments and improve cross-border settlement. For instance, UAE telecom giant e& has partnered with Al Maryah Community Bank to test a dirham-pegged stablecoin for consumer payments.
The growth of Shariah-compliant stablecoins like PUSD is a significant development in the world of Islamic finance. These stablecoins are designed to meet the specific needs of Islamic financial institutions, providing a secure and compliant way to manage transactions. As the demand for digital assets continues to grow, the development of sustainable and compliant financial instruments is crucial for promoting financial inclusion and reducing the environmental impact of traditional financial systems.
In the context of Cloud Rewards and Passive Rewards, the deployment of PUSD on ADI Chain is a positive step towards creating a more sustainable digital economy. By providing a secure and compliant way to manage transactions, PUSD helps reduce the environmental impact of traditional financial systems. As the world of cryptocurrency continues to evolve, it’s essential to prioritize sustainability and compliance, ensuring that the benefits of digital assets are accessible to everyone, while minimizing their impact on the planet.
For more information, visit https://play.google.com/store/apps/details?id=com.ecopoolmining.app and learn about the latest developments in Green Crypto and Cloud Rewards.
UAE builds out stablecoin framework
https://ecopool.network/tag/sustainability
https://ecopool.network/tag/cloud-rewards
https://ecopool.network/tag/passive-rewards
In December, UAE telecom giant e& signed an agreement with Al Maryah Community Bank to test a dirham-pegged stablecoin licensed by the UAE central bank for consumer payments across its digital platforms in an early-stage pilot.
The following month, RAKBank received in-principle approval from the central bank to issue a dirham-backed stablecoin, with the planned token expected to be fully backed 1:1 by reserves held in regulated accounts. The approval is subject to final regulatory and operational conditions before any live issuance.
The push has also expanded to dollar-denominated tokens operating under local rules. In January, Universal Digital launched USDU, a US dollar-backed stablecoin registered by the UAE central bank under its Payment Token Services Regulation, making it the first dollar-denominated token approved for payment use within the framework.
Separately, the Financial Services Regulatory Authority has granted approvals to several crypto firms, including Tether (USDT), Ripple USD and Circle, to operate inside the ADGM’s financial zone.
Magazine: Will the CLARITY Act be good — or bad — for DeFi?
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
- #UAE
- #Middle East
- #Stablecoin
- #Industry
