Abu Dhabi-based Bold Technologies, a subsidiary of conglomerate Bold Holdings, has partnered with international artificial intelligence company My Aion to launch a $2.5 billion smart-city initiative aimed at transforming urban infrastructure through AI.

The companies announced the development of a platform called Aion Sentia Cognitive City, which manages complex urban systems. The platform will be powered by Maia, an AI core engine developed by My Aion, and aims to optimize and manage systems across mobility, energy, education, healthcare and digital services. 

My Aion CEO Daniele Marinelli said the AI will know the user well enough to “recommend the perfect place for your anniversary dinner and book it for you without you lifting a finger.”

The project will debut in Abu Dhabi before expanding internationally. It is expected to launch in 18 months. 

Multibillion-dollar AI project to create jobs for UAE nationals

The project is structured under a $2.5 billion Build-Operate-Transfer (BOT) model, a public-private partnership model for large-scale infrastructure and technology projects. 

Under the model, private sector entities construct the infrastructure, run and manage the system for a certain period. The companies usually recoup their investments and earn profits during the operational phase. 

At the end of the period set by the parties involved, ownership and control of the systems developed through the BOT model are transferred to the government or a public sector entity. 

Bold Technologies CEO Thani Al Thani Al Falasi said the initiative will support UAE job creation. “This initiative will support job creation for UAE nationals, foster local innovation and contribute meaningfully to the national AI ecosystem,” he said. 

My Aion’s Marinelli said that relocating to Abu Dhabi provides their global operations with a new chapter. “The UAE offers the infrastructure and institutional support needed to scale responsibly and strategically,” Marinelli said.

Cointelegraph has reached out to Bold Technologies and My Aion for more information. 

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Crypto proponents say AI could benefit from digital assets

On May 20, Catena Labs, a project led by Circle co-founder Sean Neville, announced that it will create an AI-native financial institution. The project said that while AI systems can use traditional forms of payment, they “gain superpowers” when paired with stablecoins. 

In addition, Binance co-founder and former CEO Changpeng Zhao said at the Token2049 event in Dubai that “the currency for AI is crypto.” Zhao said AI can use blockchain technology and has far more use cases than just launching tokens in one click.  

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Yield-bearing stablecoins have soared to $11 billion in circulation, representing 4.5% of the total stablecoin market — a steep climb from just $1.5 billion and a 1% market share at the start of 2024.

One of the biggest winners of this trend is Pendle, a decentralized protocol that enables users to lock in fixed yields or speculate on variable interest rates. Pendle now accounts for 30% of all yield-bearing stablecoin total value locked (TVL), roughly $3 billion, the firm said in a report shared with Cointelegraph.  

Pendle noted that stablecoins make up 83% of its $4 billion total value locked, a sharp rise from less than 20% just a year ago. In contrast, assets such as Ether (ETH), which historically contributed 80–90% of Pendle’s TVL, have shrunk to less than 10% of its TVL.

Traditional stablecoins like USDt (USDT) and USDC (USDC) do not pass on interest to holders. With over $200 billion in circulation and US Federal Reserve interest rates at 4.3%, Pendle estimated that stablecoin holders are missing out on over $9 billion in annual yield.

Pendle TVL share by assets. Source: Pendle

Related: How to Use tsUSDe on TON for Passive dollar Yield in 2025

Growing regulatory clarity benefits stablecoins

The rise in yield-bearing stablecoins comes amid growing regulatory clarity under the US President Donal Trump’s administration.

In February, the US Securities and Exchange Commission approved yield-bearing stablecoins as “certificates” subject to securities regulation rather than banning them outright. The approval allows yield-bearing stablecoins to operate under specific rules, including registration, disclosure requirements and investor protections.  

Moreover, proposed bills like the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) further signal a favorable direction.

Meanwhile, Pendle said it expects stablecoin issuance to double to $500 billion in the next 18 to 24 months. The firm also anticipates yield-bearing stablecoins to capture 15% of this market with $75 billion in issuance (7x growth from $11 billion).

Yield-bearing stablecoins issuance. Source: Pendle

Related: PayPal to offer 3.7% yield on stablecoin balances: Report

Pendle shifts focus to yield market

Initially focused on airdrop farming, Pendle has shifted toward serving as an infrastructure layer for decentralized finance yield markets.

Ethena’s USDe stablecoin currently accounts for approximately 75% of Pendle’s stablecoin TVL. However, newer entrants such as Open Eden, Reserve and Falcon have increased the share of non-USDe assets from 1% to 26% over the past year.

Pendle is also expanding beyond Ethereum, with plans to support networks like Solana and to integrate with Aave and Ethena’s upcoming Converge blockchain.

Notably, interest in yield-generating strategies within the cryptocurrency sector has surged in recent years, driven by both retail and institutional investors seeking to maximize returns on their digital assets.

On May 19, Franklin, a hybrid cash and crypto payroll provider, announced the launch of Payroll Treasury Yield, which uses blockchain lending protocols to help firms earn returns on payroll funds.

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Bitcoin Suisse secured an in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), marking a major step in the Swiss crypto firm’s expansion beyond the European Union.

The Swiss crypto financial service provider received the in-principle approval through its subsidiary BTCS (Middle East), according to a May 21 news release.

The IPA is a precursor to a full financial services license, which would allow Bitcoin Suisse to provide regulated crypto financial services such as digital asset trading, crypto securities and derivatives offerings, as well as custody solutions.

The approval reflects the firm’s “strong commitment to maintaining the highest standards of transparency, security, and regulatory compliance,” according to Ceyda Majcen, head of global expansion and designated senior executive officer of BTCS (Middle East).

Source: Bitcoin Suisse

“Abu Dhabi, one of the Middle East’s fastest-growing financial centers, presents a compelling opportunity for growth. We look forward to working closely with the FSRA to obtain our full license,” Majcen wrote in a May 21 X announcement.

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This marks Bitcoin Suisse’s first expansion outside of the European Union.

Founded in 2013, Bitcoin Suisse played a significant role in developing the country’s crypto ecosystem and has been a key contributor to Switzerland’s Crypto Valley, a Switzerland-based blockchain ecosystem valued at more than $500 billion.

Crypto Valley Unicorns. Source: CvVc.com

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Crypto firms bet on Middle East as next global crypto hub

Increasingly more crypto firms are expanding into the Middle East, seeing the region as the next potential global crypto hub due to its business-friendly regulatory licensing environment.

On April 29, Circle, the issuer of the world’s second-largest stablecoin, USDC (USDC), received an in-principle approval from the FSRA, moving one step closer to the full license to become a regulated money service provider in the United Arab Emirates.

A day earlier, the Stacks Asia DLT Foundation partnered with ADGM, becoming the first Bitcoin-based organization to establish an official presence in the Middle East, Cointelegraph reported on April 28.

As part of the partnership, the Stacks Foundation aims to advance progressive regulatory frameworks in the Middle East.

“We’re not just focused locally — our team is engaged in global conversations, advocating for frameworks that balance decentralization, security, innovation, and compliance surrounding the unlocking of Bitcoin capital,” Kyle Ellicott, executive director at Stacks Asia DLT Foundation, told Cointelegraph.

The foundation is also developing the Bitcoin Capital Activation Framework, described as a comprehensive policy blueprint to help regulators enable Bitcoin utility in their jurisdictions.

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