A trio of major Abu Dhabi institutions, including the Emirate’s sovereign wealth fund, have teamed up to launch a new dirham-pegged stablecoin.

Abu Dhabi’s sovereign wealth fund ADQ, the United Arab Emirates’ largest bank, First Abu Dhabi Bank (FAB), and the massive conglomerate the International Holding Company, have partnered to launch the stablecoin, pending regulatory approval, three companies said on April 28.

The trio said the stablecoin would be regulated by the UAE’s central bank and backed by the country’s currency, the dirham. It will also support use cases such as machine-to-machine and artificial intelligence.

Source: IHC

The goal is to place the UAE at the “forefront of global blockchain innovation,” while also strengthening the digital infrastructure, according to ADQ.

If it gets the nod from regulators, the new stablecoin will operate on the ADI blockchain, created by the ADI Foundation, a nonprofit organization dedicated to helping established financial systems and governments advance and adopt blockchain technology.

Established in 2018, ADQ is a sovereign wealth fund focused on critical infrastructure and global supply chains. Meanwhile, IHC is one of the UAE’s largest investment firms and conglomerates with a market value of over $243 billion that has ties to the ruling family of Abu Dhabi, the country’s capital.

FAB is the largest bank in the UAE, formed in 2017 through a merger between First Gulf Bank and National Bank of Abu Dhabi.

Countries line up to challenge US dollar stablecoins

Other countries have also announced plans to launch stablecoins backed by currencies other than the US dollar.

The market cap of US dollar-denominated stablecoins crossed $230 billion in April, an increase of 54% since last year, with Tether (USDT) and USDC (USDC) dominating 90% of the market.

Related: UAE stablecoin issuer gets nod from central bank

A Russian finance ministry official has floated a plan for the country to develop its own stablecoin after a freeze on wallets linked to the sanctioned Russian exchange Garantex by US authorities and stablecoin issuer Tether. 

However, an April 23 report from investment banking giant Citigroup predicts the stablecoin supply will remain US dollar-denominated, with non-US countries promoting national or central bank digital currency.

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US federal prosecutors and the co-founders of the crypto mixer Samourai Wallet have asked a court for more time to consider potentially dismissing the case after the Justice Department rolled back its crypto enforcement.

Lawyers for Samourai Wallet CEO Keonne Rodriguez and chief technology officer William Hill said in an April 28 letter to Manhattan federal judge Richard Berman that they jointly requested with the government “for a continuance of the pretrial motions schedule by 16 days.”

The Samourai executives’ lawyers said on April 10 that they wrote to Acting Manhattan US Attorney Jay Clayton to request the dismissal of the case after an April 7 memo from Deputy Attorney General Todd Blanche shuttered the Justice Department’s crypto team.

“On April 24, 2025, defense counsel met with the prosecutors and their supervisors in person at the U.S. Attorney’s Office to discuss this request,” the lawyers said.

“The Defendants believe that a continuance of the pretrial motions schedule is warranted to permit Defendants to avoid the significant expense of preparing their motions while the Government determines its position,” the letter stated.

It added that prosecutors agreed to adjourn “without expressing any views on the merits.”

Samourai Wallet’s Rodriguez and Hill were charged with conspiracy to commit money laundering and operating an unlicensed money transmitting business in April 2024, to which they both pleaded not guilty.

Blanche’s memo said, “The Department of Justice is not a digital assets regulator,” and it would abandon enforcement and investigations besides those which “focus on prosecuting individuals who victimize digital asset investors, or those who use digital assets in furtherance of criminal offenses.”

An excerpt of the letter to Judge Berman. Source: PACER

Currently, motions in the Samourai executives’ case are due May 13, responses are due on June 10, and replies on June 24. The letter proposes to put this back to May 29 for motions, June 26 for responses, and July 10 for replies.

The continuance would not affect the trial date, which is slated for early November. 

Quashing crypto litigation list lengthens 

The move is the latest in a long list of court actions to have prosecutors’ crypto cases quashed under the Trump administration’s favorable stance toward the industry. 

Related: SEC says it won’t re-file fraud case against Hex’s Richard Heart 

On April 9, SafeMoon CEO Braden John Karony, who is charged with wire fraud and money laundering, cited Blanche’s directive in a bid to get his case dismissed. 

Meanwhile, on April 28, the DeFi Education Fund petitioned the White House to drop charges against Tornado Cash co-founder Roman Storm and requested immediate action to “discontinue the Biden-era Department of Justice’s lawless campaign to criminalize open-source software development.” 

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Researchers at the University of Zurich have been accused of undertaking an unauthorized four-month-long experiment on a Reddit board using artificial intelligence-generated comments to test whether AI could alter people’s opinions. 

As part of the experiment, AI-powered accounts faked a variety of personas, including a rape victim, a person opposed to specific social movements and a trauma counselor specializing in abuse, moderators of the r/changemyview subreddit said in an April 26 post.

“Our sub is a decidedly human space that rejects undisclosed AI as a core value,” the moderators said. “People do not come here to discuss their views with AI or to be experimented upon.” 

The researchers used AI to generate responses but attempted to personalize the replies based on information from the original posters’ prior Reddit history, such as political orientation, gender, age, and ethnicity, according to a draft of the paper.

Moderators of the r/changemyview subreddit say researchers at the University of Zurich conducted an unauthorized experiment within their community. Source: Reddit

Over the four-month experiment, Zurich University’s fake AI accounts posted 1,783 comments and received 137 deltas — a mark showing when another Reddit user acknowledged the account had persuaded them to change their opinion on an issue. 

The researchers said in a post to the subreddit that all comments were manually reviewed before posting to ensure they met the community guidelines and to “minimize potential harm.”

The university team argued that the potential benefits of this research substantially outweigh its risks. Source: Reddit

The university team argued that the “potential benefits of this research substantially outweigh its risks” because they have found that the large language models used in the experiment can be highly persuasive, surpassing all “previously known benchmarks of human persuasiveness.”

“Our controlled, low-risk study provided valuable insight into the real-world persuasive capabilities of LLMs — capabilities that are already easily accessible to anyone and that malicious actors could already exploit at scale for far more dangerous reasons,” the researchers said. 

At the same time, the researchers said the experiment shows that distinguishing humans from AI still faces significant challenges because nobody in the subreddit discovered the AI bots during the entire experiment. 

The r/changemyview board has 3.8 million members and ranks among the top 1% of subreddits by size.

Reddit considers legal options 

The Reddit board’s moderators said they were unaware of the experiment and have asked the university for an apology and to block the publication of the research. 

Reddit might also be considering legal action, as the platform’s chief legal officer, Ben Lee, said in a follow-up April 28 post that the experiment broke the site’s user agreement and rules, and all known accounts associated with the University of Zurich research effort were now banned. 

“We are in the process of reaching out to the University of Zurich and this particular research team with formal legal demands,” Lee said. 

“We want to do everything we can to support the community and ensure that the researchers are held accountable for their misdeeds here,” he added. 

Related: White House receives over 10,000 comments on AI development plan

In its response to the subreddit, the University of Zurich’s Faculty of Arts and Sciences Ethics Commission said it had investigated the incident and promised to coordinate better with test subjects in the future. The lead investigator for the project was also issued a formal warning.

“This project yields important insights, and the risks are minimal. This means that suppressing publication is not proportionate to the importance of the insights the study yields,” the ethics commission said. 

The University of Zurich did not immediately respond to a request for comment. Cointelegraph did not immediately receive a response to questions sent to an email address associated with the experiment.

Magazine: Bitcoin $100K hopes on ice, SBF’s mysterious prison move: Hodler’s Digest