#AbuDhabiStablecoin

Abu Dhabi Stablecoin Regulatory Framework – 2025 Update

The Financial Services Regulatory Authority (FSRA) within the Abu Dhabi Global Market (ADGM) has implemented a robust framework for Fiat-Referenced Tokens (FRTs)—stablecoins pegged to fiat currencies. These tokens must serve as a medium of exchange, maintain price stability, and allow redemption at par value.

Algorithmic stablecoins are banned due to volatility risks. FRT issuers must hold full reserves in the same fiat currency—either as cash ("Relevant Money") or high-quality, liquid "Reserve Investments." Issuers must also submit a transparent white paper, meet capital adequacy requirements (minimum $2M or 12 months’ expenses), and uphold redemption guarantees.

Notably, on April 28, 2025, major Abu Dhabi institutions—IHC, ADQ, and FAB—announced plans to launch a new dirham-backed stablecoin, reinforcing the emirate’s growing leadership in regulated digital finance.