UAE telecommunications heavyweight e**&** has signed a memorandum of understanding with Al Maryah Community Bank to test AE Coin, the country's first Central Bank-licensed dirham-backed stablecoin, as a payment method across its digital services.
The pilot will allow customers to use the regulated digital token to pay for mobile and home-service bills, prepaid and postpaid recharges, and transactions on e&'s platforms.
The initiative marks one of the UAE's most visible moves toward embedding blockchain-based payments into mainstream consumer infrastructure.
What Happened
e& Group CEO Hatem Dowidar described the stablecoin as offering "instant settlement, complete transparency, and frictionless access" to customers.
The telecom operator will integrate AE Coin into its existing payment infrastructure, including mobile apps and self-service kiosks.
This will provide an alternative to traditional cards and bank transfers for millions of UAE customers.
Al Maryah Community Bank CEO Mohammed Wassim Khayata said the collaboration expands real-world applications for licensed virtual assets.
Ramez Rafeek, general manager of AED Stablecoin LLC, called the agreement a milestone for bringing government-approved digital tokens into essential consumer services.
AE Coin was among the first entities to receive in-principle approval under the Central Bank's Payment Token Services Regulation framework.
The stablecoin maintains a 1:1 peg with the UAE dirham and is fully backed by reserves held within the country.
However, the memorandum of understanding signals intent rather than confirmed deployment, meaning timelines and rollout scope remain undefined.
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Why It Matters
The trial positions a regulated stablecoin inside one of the UAE's most widely used consumer ecosystems, potentially exposing millions of customers to digital asset payments.
High-frequency transactions like prepaid top-ups and postpaid billing will provide an immediate test bed for volume and reliability.
The initiative aligns with the UAE's broader Digital Economy Strategy and push for a cashless society under Central Bank supervision.
Using a fully licensed stablecoin in a major telecommunications network signals regulatory openness to controlled blockchain innovation.
If successful, the model could demonstrate how regulated tokens power routine financial activity while users interact with standard consumer interfaces.
e&'s financial technology arm separately announced a partnership with Crypto.com to explore custody, liquidity, and payment integrations pending regulatory clearance.
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