Stablecoins facilitated $33 trillion in transactions globally last year, and the UAE is right at the centre of the story. MFTA and Fireblocks just published a playbook to help banks and businesses act on this. Joining me on Zoom is John Hallahan, Head of Business Solutions & Advisory at Fireblocks. John, welcome to Wall Street to Mena.
Thank you. Good to be here.
MFTA and Fireblocks just published the UAE Stablecoin Payments Playbook. What problem were you trying to solve with it?
Every bank and payment provider we speak to in the UAE is already past the question of whether stablecoins matter. The questions they ask now are very practical — which regulator applies to my business model, how do I embed compliance like sanction screening and travel rule, and who are my liquidity providers. The gap in the market is not ambition. It's the route from pilot into production. That's what the playbook provides. It maps the UAE regulatory landscape, sets out the use cases that are live today, and gives institutions a practical roadmap from proof of concept through to large-scale enterprise production. MFTA brings the ecosystem relationships and the connections with policymakers. Fireblocks brings what we see working across our 90 bank clients and hundreds of payments companies globally. It's a strong collaboration.
What is actually holding banks back from going live?
Honestly, the technology is rarely the blocker anymore. The blockers are things traditional banking projects have always faced — governance, liquidity, and ownership. We see three patterns again and again. First, risk and compliance teams not being brought in early enough — when projects are stalling, it's usually around those issues. Second, no clear owner in the business, which means the project stays in the innovation lab instead of becoming a normal P&L item for the bank. Third, liquidity — a stablecoin is only as strong as the weakest partner in the process. The good news is that production is clearly achievable. Institutions like Cross River, WorldPay, and Bridge are already live. They've solved those three points. The playbook is essentially a checklist as you work through that process yourself.
Cross-border B2B settlement, treasury management, remittances — which use case is gaining the most traction in the UAE?
Cross-border B2B settlement is the clear frontrunner, because that's where the pain and the ticket sizes are largest. The UAE is a global trade hub. Companies have money trapped in different accounts, they're paying significant FX charges, and they feel the friction of legacy rails every day. Treasury is probably the second closest behind — large companies operating across the GCC need to move money between entities efficiently, and that's traditionally been very challenging. Remittances have the largest long-term value potential, but they involve different types of licensing. B2B is the clear frontrunner right now.
What has changed in how banks approach digital assets over the past decade?
Ten years ago, banks were asking what is blockchain. Five years ago, they were asking should we invest in this. Today they are asking how fast can I get into production without breaking things. Two things have fundamentally driven that shift. First, the conversation has moved out of the innovation lab and into the heads of payments, transaction banking, and investment banking — it has become a real business line question. Second, regulatory clarity. Frameworks like VARA, ADGM, and an active Central Bank of UAE give banks the comfort to invest in the technology, hire the right people, and commit budget behind a strategy.
The playbook outlines five regulators in the UAE covering digital assets. Is that regulatory complexity a help or a hindrance?
From the outside looking in, it might appear complex. But what it actually provides is clarity about where you can play and how you can win. The Central Bank covers dirham-backed stablecoins and payment tokens — very clear mandate. VARA covers virtual assets in Dubai — clear mandate. The FSRA covers the financial free zones. ADGM covers Abu Dhabi. What that means is that wherever you're based, you know exactly who your regulator is and what activities they cover. Compare that with other markets globally where regulatory clarity is still missing. I would much rather have five regulators with clear rules than one regulator with no rules.
AED-backed stablecoins are emerging alongside dollar stablecoins. How do banks think about which one to use and when?
It's not an either-or decision. Dollar stablecoins dominate cross-border flows today because dollar liquidity is very prevalent in global trade — many suppliers prefer to be paid in dollars. The Central Bank opened the door for dirham stablecoins with its framework in 2023, and a number of coins have already gained approval. The digital dirham CBDC is also on the horizon. What you'll eventually see is all banks operating across dollar stablecoins, dirham stablecoins, and the digital dirham simultaneously — full coexistence. The routing logic will come down to three questions: where does the liquidity sit, does my counterparty accept it, and what regulatory perimeter does it sit within. Domestic flows will increasingly use dirham-denominated options. International flows will continue to use USD and other stablecoins for some time.
What does the next year look like for stablecoin payments in the UAE?
Fewer pilots and more production — that's the headline. Over the next 12 months, I expect to see a wave of regulated banks and payment providers delivering live services across B2B payments and corporate treasury, pushing volumes significantly higher. I expect more dirham-denominated stablecoins to be regulated and issued in market alongside the dollar rails. And I expect corridors to emerge that make sense for cross-border trade — into Africa and Southeast Asia particularly. The UAE is a large remittance market, and some of the biggest players globally are moving into that space. Expect lots of press releases and lots of projects.
Thank you, John. Thank you so much for joining us today.
Thank you.
