ADNOC Distribution, the United Arab Emirates (UAE)'s largest fuel distributor, has officially introduced stablecoin payments. This key player in the Middle East's energy infrastructure is incorporating digital assets into real-world payments, signaling the expansion of stablecoin adoption beyond finance into the distribution and energy sectors.
According to cryptocurrency media outlet Odaily, ADNOC Distribution has signed an agreement with local financial institution Al Maryah Community Bank to allow payments in the stablecoin "AE Coin" at 980 retail outlets in the UAE, Saudi Arabia, and Egypt. This includes not only gas stations but also everyday retail spaces such as "Oasis by ADNOC" convenience stores and car washes.
AE Coin is the first stablecoin approved by the Central Bank of the UAE and is pegged 1:1 to the dirham. Users can store AE Coin and use it for payments through the "AEC Wallet" provided by Al Maryah Community Bank. This is a symbolic example of a stablecoin, issued and distributed under regulatory approval, being directly applied to a large offline distribution network.
Bader Saeed Al Ramki, CEO of ADNOC Distribution, described this introduction as a significant step forward in enabling secure and regulated digital payments in everyday retail. This move goes beyond simply adding a payment method and is seen as aligned with a national digital payments infrastructure strategy.
ADNOC Distribution currently operates 562 service points in the UAE, 172 in Saudi Arabia, and 243 in Egypt. The introduction of stablecoin payments is likely to spark a wave of digital currency-based physical payment experiments across the Middle East.
The market sees ADNOC's case as a precedent that could eventually spread to other essential consumer sectors, such as telecommunications, transportation, and utilities. Attention is focused on the impact of the Middle East's payment experiment, spearheaded by a central bank-approved stablecoin, on the global digital asset payment competition.
