Palm Azgar Finance Deploys Shariah-Compliant Stablecoin on ADI Chain

Palm Azgar Finance has announced that its Shariah-compliant stablecoin, PUSD, will be deployed on ADI Chain, a layer-2 blockchain designed for institutional settlement in the Middle East. The move expands the number of networks where institutions can access the token.

ADI Chain was originally built as the settlement layer for a dirham-backed stablecoin initiated by International Holding Company and First Abu Dhabi Bank. The Central Bank of the UAE licensed that token, and the chain's infrastructure now supports both dollar-linked and dirham-denominated assets on the same platform.

PUSD holds approximately $2.3 billion in circulating supply, with each token backed 1:1 by reserves held in Saudi riyals and UAE dirhams, both of which are pegged to the U.S. dollar. The stablecoin has already been integrated onto several other blockchains, including Ethereum, BNB Chain, Solana, and Tron.

ADI Chain's infrastructure is designed to support settlement corridors linking the Gulf, the broader Middle East, and parts of Africa. Fees on the chain are paid using its native token. PUSD aims to provide institutions operating under Shariah-compliant frameworks with access to on-chain settlement without requiring them to use interest-bearing instruments.

The $3 trillion Islamic finance market is a significant target for PUSD, which will be deployed in this space through ADI Chain's infrastructure. The UAE has developed a multi-layered regulatory framework for digital assets over the past two years, with several institutions launching dirham-pegged tokens under that framework recently.