#AbuDhabiStablecoin iturn0image0turn0image4turn0image6turn0image8The #AbuDhabiStablecoin initiative represents a significant development in the UAE's efforts to integrate blockchain technology with its financial infrastructure. This project aims to introduce a stablecoin pegged to the UAE dirham, facilitating seamless digital transactions within the region.
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### 🏛️ Regulatory Framework
The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has proposed a regulatory framework for fiat-referenced tokens (FRTs), a category that includes stablecoins Key aspects of the proposal include:
- **Reserve Asset Requirements**:Issuers must maintain reserve assets equal to or greater than the nominal value of all outstanding FRTs, with daily mark-to-market valuations
- **Segregated Pools**:Issuers of multiple FRTs are required to operate and maintain separate pools of reserve assets for each token
- **Redemption Rights**:Holders must have the right to redeem FRTs for the equivalent amount of fiat currency from the issuer upon request citeturn0search2
The FSRA has invited public feedback on this proposal, with a deadline set for October 3, 2024 citeturn0search2
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### 🤝 Industry Collaboration
A notable collaboration in this space involves Phoenix Group PLC, a multi-billion-dollar tech conglomerate listed on the Abu Dhabi Securities Exchange, and Tether, the largest company in the digital asset industr. Together, they plan to launch a stablecoin pegged to the UAE dirha. This partnership aims to bridge the gap between traditional finance and the digital economy, offering a stable, reliable, and secure digital currenc. citeturn0search4
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### 📈 Strategic Implication
