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Zand, the Abu Dhabi-backed UAE digital bank, is adding support for USDC, Circle’s US dollar stablecoin, alongside its own regulated Zand Dirham, the bank announced August 25, 2026. The move gives eligible business clients a choice between dirham-denominated and dollar-denominated settlement on the same regulated rails, for payments, treasury operations, trading and cross-border transactions.
How the expansion actually works
Zand Dirham is issued through Zand Trust, a wholly owned subsidiary of Zand Bank, and is backed one-to-one by dirham reserves held in segregated, regulated accounts, running across multiple public blockchains. USDC, issued by Circle (NYSE: CRCL), is redeemable one-to-one for US dollars. Rather than replacing one currency with the other, Zand’s pitch is interoperability: eligible business clients get both options on the same infrastructure, useful for a company that needs to settle in dirhams with a local counterparty and in dollars with an international one, without switching platforms.
“We built the Zand Dirham stablecoin to tear down the walls between global markets,” said Michael Chan, Zand’s CEO.
Dr. Saeeda Jaffar, Circle’s managing director for the Middle East, Turkey, Africa and Pakistan, said “interoperability between regulated stablecoins can support new opportunities for businesses.” Neither named a specific rollout date or which markets get USDC access first.
Zand isn’t building this alone in the market
Zand Dirham launched following a November 2025 CBUAE approval, giving it roughly nine months of live operation before this USDC expansion. Zand Bank itself carries a BBB+ rating from Fitch and is backed by Abu Dhabi’s ruling family investment arm, Franklin Templeton, Aditya Birla Group and business figures Mohamed Alabbar and Yusuff Ali.
It’s not the only regulated dirham stablecoin in the pipeline, though. RAKBank received in-principle CBUAE approval for a competing dirham-backed stablecoin on January 7, 2026, and a separate IHC-ADQ-FAB consortium has its own dirham stablecoin moving through the CBUAE’s approval process. Zand adding USDC specifically, rather than just scaling its own dirham token further, is what sets this move apart from the other two.
Why it matters
For UAE businesses settling across currencies
A business with both local dirham obligations and international dollar counterparties currently has to manage that split across separate systems. Zand’s pitch is putting both on one regulated rail, useful specifically for companies with a genuine mix of domestic and cross-border payment needs, not a consumer-facing product.
For the UAE’s stablecoin landscape
Zand already had a cross-border payments partnership with Mastercard dating to 2025, so this extends an existing strategy rather than starting a new one. With RAKBank’s competing dirham stablecoin still at the in-principle stage and the IHC-ADQ-FAB token still moving through approval, Zand has both a head start and now a dollar-denominated option none of its dirham-stablecoin peers have announced yet.
The bottom line
Zand has real regulatory standing and nine months of live dirham-stablecoin operation behind this move, but neither Zand nor Circle has said which markets get USDC access first, when it rolls out, or how much volume Zand Dirham has actually processed since November. Whether this converts into measurable business adoption, not just a second supported currency, is the thing to watch next.
FAQ
What is USDC?
USDC is a US dollar-backed stablecoin issued by Circle (NYSE: CRCL), redeemable one-to-one for US dollars and widely used for payments and settlement globally.
What is Zand Dirham?
Zand Dirham is the UAE’s first fully regulated, multi-chain dirham-backed stablecoin, issued by Zand Trust (a subsidiary of Zand Bank) and backed one-to-one by dirham reserves held in segregated, regulated accounts. It has operated since a November 2025 CBUAE approval.
Is Zand the only UAE bank building a dirham stablecoin?
No. RAKBank received in-principle CBUAE approval for a competing dirham-backed stablecoin in January 2026, and a separate consortium of IHC, ADQ and FAB has its own dirham stablecoin moving through the CBUAE’s approval process.
What can businesses actually do with Zand’s USDC support?
Eligible business clients can use USDC alongside Zand Dirham for payments, settlement, treasury operations, trading and cross-border transactions, choosing whichever currency fits a given counterparty or transaction.
When does Zand’s USDC support roll out, and in which markets?
Neither Zand nor Circle has disclosed a specific rollout timeline or named which markets get access first.
Editor’s Take: Nine months of live dirham-stablecoin operation, backed by a CBUAE approval and a Fitch BBB+ rating, is a genuine head start over RAKBank’s still-in-principle approval and the IHC-ADQ-FAB token still working through the process. Adding USDC on top gives Zand something neither competitor has announced yet: a dollar-denominated option on the same regulated rails.
Zand hasn’t said how much volume its own dirham stablecoin has processed since November, and that’s the figure that would actually tell UAE businesses whether this is live infrastructure or a well-timed announcement. Worth checking back on once that number, or the lack of one, becomes clearer.