Banks Poised to Drive Next Stage of Digital Money Growth in UAE

The UAE is at the forefront of developing a regulated digital asset ecosystem, and experts say that banks will play a crucial role in shaping its next phase. According to Mark Ng, who leads digital assets at Zand, an AI and blockchain-powered digital bank in the UAE, the industry is entering a new phase where stablecoins, tokenised assets, and blockchain infrastructure are transforming the way value moves through the economy.

Ng argues that the future of digital money lies in the tokenisation of trade, where stablecoins serve as a trusted settlement layer and tokenised real-world assets (RWAs) enable seamless trading on blockchain networks. The combination of these technologies forms the foundation for tokenising trade.

Globally, governments and financial institutions are accelerating efforts to build regulated digital payment infrastructure. The UAE has positioned itself among the world's most active jurisdictions for digital assets, with regulators creating dedicated licensing regimes. In the UAE, Zand's UAE dirham-backed stablecoin, AEDZ, has reached hundreds of millions in circulation within months of its launch.

Ng notes that banks and treasuries are increasingly viewing blockchain as a more efficient payment rail rather than a parallel financial system. The past year has marked an important shift as mainstream finance and crypto-native firms converge. Banks are launching stablecoins and tokenised deposits, while digital asset companies are expanding beyond cryptocurrencies into tokenised stocks, commodities, and other traditional financial products.

Ng believes that the convergence reflects broader industry trends, with stablecoins growing into one of crypto's largest sectors, with global circulation exceeding $300 billion. The transaction volume exceeded $34 trillion in 2025, according to Visa. Cross-border payments remain the strongest commercial case for stablecoins, which will complement money rather than replace it.