Zand expands USDC support to enhance cross-border payments in UAE

Zand Bank, the UAE’s first fully licensed digital bank, is widening its stablecoin toolkit by expanding support for Circle’s USDC alongside its own dirham-backed stablecoin, the Zand Dirham (AEDZ). The goal is straightforward: make cross-border payments faster, cheaper, and less painful for businesses operating in and out of the Emirates.

What Zand is actually building

The expansion puts both USD-pegged and AED-pegged stablecoins under one banking roof. Zand’s digital asset custody service now supports USDC on both the Ethereum and Polygon networks, giving clients flexibility across two of the most widely used blockchain ecosystems.

On the dirham side, Zand launched AEDZ on November 17, 2025. It holds the distinction of being the first regulated multi-chain AED-backed stablecoin on public blockchains. Each AEDZ token is backed 1:1 by segregated AED reserves, with independent audits and attestations to keep everything above board.

Zand isn’t just bolting on crypto features to a traditional bank. The institution achieved break-even within 22 months under CEO Michael Chan, suggesting its digital-first model has commercial legs. It also carries a BBB+ investment-grade rating from Fitch.

The regulatory backbone

The bank holds a full banking license from the Central Bank of the UAE. In December 2024, it also received a VARA authorization for digital asset custody, the regulatory stamp required to handle crypto assets within Dubai’s framework.

Partnerships extend the reach further. Zand has linked up with Ripple and XDC Network to improve liquidity, custody options, and payment solutions involving stablecoins.

Why this matters beyond the UAE

Cross-border payments remain one of the genuinely unsolved problems in global finance. The World Bank has estimated that remittance fees average around 6% globally, and settlement times for commercial payments can stretch across days. Stablecoins on public blockchains compress both of those variables dramatically, often settling in seconds for a fraction of a cent.

By wrapping USDC and AEDZ support inside a Fitch-rated, centrally licensed bank, Zand is addressing the trust deficit that has kept many corporate treasury departments on the sidelines.

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