Web3 & Blockchain
How UAE Banks Are Experimenting With Blockchain Settlement
Jul 01, 2026
Introduction
UAE banks have moved beyond blockchain experiments into live, revenue-generating
infrastructure. What began a decade ago with pilot projects has now matured into
real-world deployments across tier-1 institutions. For corporate treasurers and financial
institutions, these changes are already reshaping how money moves.
The Problem: Traditional Settlement Is Too Slow
Cross-border payments and trade finance still rely on legacy systems like SWIFT, where
settlement can take days. Reconciliation delays tie up working capital, and intermediary
banks add layers of cost and complexity.
The Solution: Live Blockchain Infrastructure
Banks are deploying multiple blockchain solutions for real-time settlement. Emirates
NBD pioneered blockchain for remittances and trade finance in 2016. The CBUAE's
Digital Dirham completed its first government-to-government transaction in under two
minutes via mBridge, cutting costs by up to 50%. First Abu Dhabi Bank deployed the
AED-backed DDSC stablecoin for institutional settlements. HSBC is rolling out tokenised
deposits to UAE corporate clients in 2026 for 24/7 instant settlements. JPMorgan's
Kinexys platform processes over $7 billion daily, with eight MENA banks including First
Abu Dhabi Bank and Emirates NBD using it for cross-border settlement.
Real Numbers: The Scale of Adoption
Project mBridge saw the UAE execute a AED 50 million government-to-government
transaction in early 2024. IHC executed a Dh110 million DDSC transaction on ADI Chain
in May 2026. HSBC aims to launch tokenised deposits in the UAE during the first half of
2026.
UAE-Specific Considerations
VARA's regulatory framework and the CBUAE's February 2026 approval of the DDSC
stablecoin have enabled full-scale deployment. Banks are integrating blockchain with
traditional systems, and the Digital Dirham is expected to become a primary remittance
channel to India.
Why FortyFi
FortyFi helps financial institutions and fintechs navigate UAE blockchain settlement
infrastructure. We build compliant, interoperable solutions that integrate with both
legacy banking systems and emerging blockchain networks.
FAQ
Are UAE banks still piloting blockchain? No. Major banks have moved to live production
deployments for settlements and payments.
What is the Digital Dirham? The UAE's CBDC, used for instant government-to-government
transactions and cross-border trade.
Which banks are using blockchain for settlements? Emirates NBD, First Abu Dhabi Bank,
HSBC, and others via platforms like mBridge, Kinexys, and Partior.
Explore Blockchain Settlement
Message FortyFi on WhatsApp for a free consultation on blockchain settlement
solutions.
