This new experiment in the UAE could represent a turning point in how digital money is used in major consumer platforms.
The telecom giant "e&" (formerly known as Etisalat) has begun evaluating whether a regulated stablecoin linked to the UAE dirham can operate within its payment systems. This could transform daily phone bills and digital services into transactions settled using blockchain technology.
Key points:
* The e& group is testing a dirham-backed, regulated stablecoin for settling telecommunications and digital service bill payments.
* The initiative uses AE Coin, one of the first tokens approved under the UAE's Payment Token Service Regulation.
* The initiative is still exploratory, and there is no confirmed timeline for actual launch.
* Its financial arm, e& money, is evaluating the infrastructure of Crypto.com separately for custody, liquidity, and payment features.
The initiative stems from a collaboration agreement with Al Maryah Community Bank, one of the pioneers of licensed virtual assets in the country. Executives from both institutions described the partnership as part of a national push to steer innovation through fully supervised financial pathways, a hallmark of the UAE's digital finance strategy.
Instead of initially focusing on merchant-specific use cases or fintech applications, this experimental project aims to test stablecoins within one of the most widely used consumer ecosystems in the UAE, where millions of residents interact with telecommunications services on a monthly basis.
How the dirham-backed stablecoin can be utilized
The stablecoin under study, AE Coin, is designed to reflect the value of the UAE dirham while operating under the direct oversight of the Central Bank of the UAE. The token aims to provide the instant speed of cryptocurrencies while maintaining the regulatory protections typically associated with traditional payment systems.
Under the experimental framework, e& will examine how AE Coin can be used to settle payments across its range of digital touchpoints, including mobile top-ups, household service payments, smart service platforms, and future expansions into e-commerce. If the process proves successful, customers may pay for telecommunications services using tokenized dirhams without noticing any change in their user experience.
Supporters of the initiative say that the transparency of the stablecoin and its instant settlement properties make it suitable for high-volume consumer payments. The team behind AE Coin described the agreement as a pivotal moment for licensed stablecoins trying to transcend specialized use cases for blockchain technology.
Regulatory momentum and reality in the early stage
AE Coin was one of the first tokens to receive preliminary approval under the UAE's Payment Token Service Regulation, placing it at the forefront of competition for stablecoins in the region. This regulatory clarity is a key reason why major companies like e& are willing to experiment with digital tokens in production-level systems.
However, since the arrangement is based on a Memorandum of Understanding (MoU), the collaboration remains exploratory. There is no specific timeline for launch, no confirmed implementation plan, and no guarantee that AE Coin will become an official payment method for telecommunications services. Much depends on the results of testing and subsequent regulatory guidance.
If this model succeeds, it could demonstrate how fully regulated stablecoins can quietly support routine financial activity, settling in the background while users continue to interact with standard consumer interfaces.
e& money is exploring additional infrastructure for cryptocurrencies via Crypto.com
The telecommunications group is also evaluating other digital asset technologies through its financial arm, e& money. In a separate development, the company announced it is reviewing potential integrations with the Crypto.com platform, focusing on custody solutions, trade execution, and global liquidity direction.
The organizations state that their collaboration aims to expand practical use cases for cryptocurrencies in the UAE, including faster settlement for merchants and programmable loyalty systems. Melika Kara Tanrikulu, CEO of e& money, described the initiative as a step toward integrating advanced cryptocurrency functionalities into regulated consumer financial services.
