Summary:

PUSD, a Shariah-compliant stablecoin, launches on ADI Chain.
Backed 1:1 by Gulf currencies including Saudi riyal and UAE dirham.
Targets over $3 trillion Islamic finance market.
ADI Chain built for institutional settlement in the Middle East.
Move aligns with UAE's growing stablecoin regulatory framework.

A new chapter is unfolding for Islamic finance in the digital asset space as PUSD, a Shariah-compliant stablecoin, expands its footprint with a deployment on ADI Chain - a Layer 2 network built for institutional use across the Middle East. It sits right at the intersection of two growing trends: the rise of regulated stablecoins and the push to modernize financial systems in the Gulf region. PUSD already has a circulating supply of around $2.3 billion. The token is backed one-to-one by reserves held in Saudi riyals and UAE dirhams, both of which are pegged to the US dollar. This setup keeps it stable in value while aligning with Shariah principles, which avoid interest-based structures and certain forms of financial speculation.

Before this integration, PUSD was already live across major networks like Ethereum, BNB Chain, Solana, and Tron. Adding ADI Chain to that list signals a shift toward more institutional-grade usage rather than just retail access. ADI Chain itself is designed with a specific audience in mind - governments, central banks, and large financial institutions managing real-world assets. Built in Abu Dhabi, it focuses on settlement infrastructure, meaning it handles how transactions are finalized and recorded, rather than just enabling transfers. Islamic finance represents a market valued at over USD 5 trillion in 2026. Despite its size, much of its infrastructure still relies on traditional systems that can be slow and fragmented. Bringing a compliant stablecoin into a purpose-built blockchain environment starts to change that.

Institutional Settlement and Dual-Stablecoin Infrastructure

The integration of PUSD into ADI Chain introduces flexibility in how institutions can settle transactions. ADI Chain is already positioned as the settlement layer for a dirham-backed stablecoin initiative led by major players like International Holding Company and First Abu Dhabi Bank, under oversight from the UAE Central Bank. With PUSD now part of the ecosystem, institutions can choose between a dollar-linked stablecoin and a dirham-denominated one - all within the same infrastructure. That might sound like a small detail, but it solves a real problem. Cross-border transactions often involve currency conversions, intermediaries, and delays. Having multiple stablecoin options on one network allows institutions to settle transactions more directly, depending on their needs.

The network is also designed to support transaction corridors that stretch across the Gulf, the wider Middle East, and parts of Africa. These are regions where cross-border trade is active but still faces inefficiencies in settlement systems. PUSD's role here is clearly defined. Issued by Palm Azgar Finance, it is built for institutional use cases. That includes corporate treasury management, exchange liquidity, and payment processing. It's not trying to be everything at once - it's focused on being a reliable settlement asset in regulated environments. On the technical side, transactions on ADI Chain require its native token for fees. That creates an internal economy where usage of the network directly ties into its infrastructure. Institutional players need systems that are predictable, compliant, and aligned with regulatory frameworks. That's where this integration seems perfect.

UAE's Regulatory Push and the Bigger Picture for Stablecoins

The expansion of PUSD also reflects a broader shift happening in the United Arab Emirates. Over the past few years, the country has been building a structured approach to digital assets, focusing on clear rules rather than uncertainty. Authorities like the Central Bank of the UAE and Abu Dhabi Global Market have been working on frameworks that define how stablecoins and virtual asset providers operate. The goal is simple - bring innovation into a regulated environment without slowing it down. Dirham-pegged stablecoins are already part of this plan. They are being explored as tools to modernize domestic payments and improve how money moves across borders. Several early-stage pilots are already underway.

In December, telecom giant e& partnered with Al Maryah Community Bank to test a dirham-backed stablecoin for consumer payments. Shortly after, RAKBank received in-principle approval to issue its own version, fully backed by reserves in regulated accounts. The UAE is integrating it into financial infrastructure step by step. PUSD's entry into ADI Chain fits into that direction. It adds another layer to the ecosystem, especially for institutions looking to operate within Shariah-compliant frameworks while still benefiting from modern settlement systems. At the same time, it raises an interesting point about how stablecoins are evolving. Early versions focused mainly on trading and liquidity. Now, the focus is shifting toward real-world use - payments, settlements, and financial operations at scale.

Final Thought

For Islamic finance, this could be a turning point. A system that respects its principles while improving efficiency has always been a challenge. Blockchain doesn't solve everything, but it offers tools that make certain things easier - faster settlement, transparent reserves, and programmable transactions. The real test will come with adoption. Technology alone isn't enough. Institutions need to trust it, regulators need to support it, and users need to find it practical.