#AbuDhabiStablecoin Stablecoin Rules in ADGM

In Abu Dhabi’s financial hub (ADGM), stablecoins are regulated by the Financial Services Regulatory Authority (FSRA). Their focus is on Fiat-Referenced Tokens (FRTs)—stablecoins backed 1:1 by fiat currency like the UAE Dirham.

Only fully backed FRTs are allowed. Algorithmic stablecoins are banned due to their risk. Issuers must keep reserves in cash or safe, liquid assets and meet minimum capital requirements. A clear, approved white paper is also required before launch.

While these tokens aren’t meant to be investment products, income from reserves can be shared with holders.

Recent News:

On April 28, 2025, IHC, ADQ, and First Abu Dhabi Bank announced a new AED-backed stablecoin, showing growing interest in digital finance from major UAE players.#AbuDhabiStablecoin #Write2Earn