ADNOC Distribution Accepts AE Coin at 980 Service Stations

TLDR

• ADNOC operates 562 stations in UAE, 172 in Saudi Arabia.
• AE Coin is the first Central Bank-approved stablecoin in UAE.
• Rollout enhances digital payment systems and regulatory compliance.

ADNOC Distribution, the largest fuel retailer in the UAE, is expanding its digital payment options. The company announced it will begin accepting AE Coin, a dirham-pegged stablecoin, at approximately 980 service stations across the UAE, Saudi Arabia, and Egypt.

This move comes as part of a partnership with Al Maryah Community Bank (AMCB) and aims to leverage the AEC Wallet for transactions. It marks a significant step in digital payment accessibility for everyday retail customers according to a memorandum of understanding (MoU) signed between ADNOC and AMCB.

Widespread Adoption Across Three Countries

ADNOC Distribution, the retail arm of Abu Dhabi National Oil Company, operates around 562 stations in the UAE, 172 in Saudi Arabia, and 243 in Egypt. With the introduction of AE Coin payments, these stations will now offer a new payment method directly integrated into their system.

The inclusion of stablecoin payments is designed to enhance the convenience of transactions at fuel pumps, in Oasis by ADNOC stores, and at car washes. This is possible through the AEC Wallet, as highlighted in the official statement by Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution.

Stablecoin Approval and Regulatory Compliance

AE Coin is noted as the first Central Bank–approved stable digital currency in the UAE. It is fully backed by AED, ensuring a 1:1 value with the dirham. This rollout emphasizes alignment with UAE’s regulatory efforts, including compliance with Countering the Financing of Terrorism (CFT) standards.

This regulatory approval gives AE Coin a significant standing in the market as a sovereign-backed digital asset, setting a benchmark for similar digital currencies. The rollout showcases how government and business can test blockchain-enabled systems before full-scale adoption.

Implications for Payment and Financial Systems

The introduction of AE Coin in daily transactions supports ADNOC’s goal to improve digital payment systems. This move could encourage other sectors to explore stablecoin payments. While AE Coin is the first to be implemented in UAE fuel stations, it may pave the way for other fiat-backed stablecoins.

While the program is exclusively for AE Coin initially, industry observers note the potential influence on other stablecoins and sovereign-linked tokens. As no involvement of BTC, ETH, or DeFi tokens is indicated, the focus remains on fiat-backed and regulated digital currencies.

Oversight and Assurance from the Central Bank

The Central Bank’s approval and the currency’s AED backing ensure transparency and security in using AE Coin. This initiative highlights the cooperation between financial institutions, demonstrating a move towards regulated digital payments. ADNOC and Al Maryah Community Bank uphold this standard through the MoU and advanced payment solutions.

Despite the rollout’s scale, specific details regarding on-chain analytics, such as total supply or staking flows, remain undisclosed. Nevertheless, this step represents a significant advance in integrating regulated digital assets into everyday commerce without public data on liquidity or market effects.