Stablecoins are starting to move real money through this region — but only because payment infrastructure and regulation caught up first. Joining me is Miriam Kiwan, advisor and former Senior Vice President and VP for Circle MEA and MFTA member. Miriam, welcome to Wall Street to Mena.
Thank you for having me.
Payment infrastructure and stablecoins used to be separate conversations. When did they actually start merging?
They started merging when regulators began embedding stablecoin rules within payment law. We saw this in the US with the GENIUS Act, and here in the UAE specifically, it happened in July 2026 when the Central Bank of the UAE integrated stablecoin rules within the Payment Token Services Regulation. Once a central bank starts viewing stablecoins as a payment instrument, the conversation shifts completely — from trading to payment rails. You are talking about reserves, settlement and finality. The same language used in banking. That is what really pushed stablecoins into the payment discussion, alongside the explosive growth in their real-world utility over the last few years.
Regulators across the region approach stablecoins differently. What are the main differences between the UAE, Bahrain, and Saudi Arabia?
Bahrain probably developed the cleanest stablecoin issuance rulebook — 1-to-1 backing, no algorithmic coins, similar principles to the UAE. But the UAE went further and tackled the harder problem, which is integrating stablecoins within the payment rails. Regulating the token is a very different problem from regulating the payment rails — it is significantly more complex. That is why the UAE incorporated it into federal law under the Central Bank. The UAE has also further differentiated by separating locally issued stablecoins — AED-denominated — from foreign stablecoins, which are not permitted for local payment use. Saudi Arabia is moving more deliberately, following its Vision 2030 modernisation agenda. They have not lagged — they have made a deliberate choice.
The UAE Stablecoin Payments Playbook is behind me. Walk us through the roadmap it gives.
It is a sequential playbook rather than a technical guide. It is designed to help institutions build stablecoin payment capabilities step by step. First — choose a specific use case. Second — define your regulatory position, know who your regulator is and what activities you will be regulated under. Third — build your operational model, governance, compliance, the same discipline the banking system applies. Fourth — embed banking partners and corridor partners, because without the off-ramp, successful integration is impossible. Fifth — design to scale. What we have observed is that institutions that start with technology tend to get stuck at compliance. Those who follow these steps tend to ship products much faster.
What is the hardest technical piece for banks trying to integrate stablecoins into their existing payment rails?
The blockchain rail itself is actually the easiest part. The hard part is what sits on either side of it. Banks operate with cut-off times and daily settlements. Stablecoins are instant. Both systems need to work together — and that integration challenge is significant. The second hard part is compliance — travel rule, real-time monitoring, everything has to happen instantly. You cannot wait until the next day the way banking traditionally allows. The third, and the one most players miss, is liquidity on the other side. Your settlement is only as strong as your FX or corridor partner at the receiving end. If they are weak, your payment is weak regardless of how good the technology is.
In markets like Lebanon where the currency is unstable, is stablecoin infrastructure actually a solution?
Unfortunately not yet. The demand is real and we already see dollarization happening in those markets. But without a licensed off-ramp, a regulated platform, and a robust banking system that can support it, we are really talking about store-of-value use cases rather than a functioning payment system. Emerging markets in currency distress tend to use stablecoins to save — not to pay. Payment ecosystems require more developed regulation to function properly.
If you were advising a regulator in this region today, what would be the first step?
Most regulators have now managed to license the token or the coin. The gap that still exists is the regulation of the corridors. Who can receive stablecoin payments? How do they convert to fiat on the same day — not the next day? These are the elements that still need to be developed. Not all regulators have tackled this. And I believe this is exactly why stablecoins still represent just 1% of global payment flows, despite the explosive growth we have seen in the last few years.
Thank you so much for being with us today, Miriam.
It has been a pleasure. Thank you. All the best.
