Fluent Finance to develop stablecoin technologies in the UAE

Image courtesy: WAM

US-based Fluent Finance will use its new UAE headquarters to deploy and scale its proprietary Fluent Economic Bridge, which can be used by importers and exporters to settle transactions through a bank-issued cryptocurrency.

The blockchain firm, which has joined the Ministry of Economy’s NextGen FDI programme, said by collaborating with banks and regulators its platform provides the immediacy and transparency of cryptocurrency with the security and regulatory structure of the traditional banking system.

The web3 company is piloting the platform in Kenya and plans to develop a digital trade corridor with the UAE.

Fluent’s technology-led approach towards trade aligns with the ministry of economy’s tradetech initiative.

The ministry is partnering with the World Economic Forum in its tradetech initiative to promote the use of innovative technologies in global supply chains and the UAE’s Comprehensive Economic Partnership Agreement (CEPA) programme.

The UAE’s CEPA programme seeks to achieve frictionless trade between the UAE and an increasing number of nations across the world.

Fluent is pleased to announce our activity in the UAE Ministry of Economy’s NextGen FDI programme.

We are as excited to develop and implement deposit token infrastructure in the UAE as we are grateful for the support of @ThaniAlZeyoudi.https://t.co/RPOPPZG0cV

— Fluent Finance (@FluentDAO) October 11, 2023

Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said Fluent’s participation in the NextGen FDI initiative underscores the country’s status as a hub for global trade and a supportive ecosystem for new technologies such as blockchain.

“The UAE has become a prominent advocate for the modernisation of the multilateral trading system, as well as a supportive place for the development of the tools and applications that can deliver it,” said Dr Al Zeyoudi.

Bradley Allgood, Fluent Finance’s CEO, said, “The UAE offers exactly the kind of supportive, enabling environment that web3 companies such as Fluent require.”

“The combination of thoughtful regulation, forward-looking vision and advanced technology ambitions means we have the right foundations on which to develop our product and grow our organisation.”

Fluent Finance opens Abu Dhabi office

Meanwhile, Fluent opened its Abu Dhabi office in July to advance the UAE’s trade finance and cross-border payments landscape while complementing the country’s ambitious vision to become a global hub of digital innovation.

The blockchain specialises in deposit token infrastructure and its low counterparty risk stablecoin and the company’s expansion into the Middle East is being backed by the UAE Ministry of Economy. The company is currently procuring a trade licence from Abu Dhabi Global Market.

Fluent said the recent trade agreements between the UAE and other countries such as India and China mark a significant milestone in fostering a closer financial relationship between the nations.

The agreements account for more than $100bn in bilateral trade, with a focus on strengthening the use of new technologies and settlement with digital currency. Deposit tokens issued by commercial banks are poised to offer a borderless missing link to accelerate trade settlement to central bank digital currency.

“The UAE has positioned itself as a global leader for digital assets through their special economic zone initiatives, regulation foresight, and global trade expansion with strategic MoUs,” Allgood said in July.