#AbuDhabiStablecoin Abu Dhabi is rapidly emerging as a significant hub for stablecoin development and regulation. The Abu Dhabi Global Market (ADGM) has established a comprehensive regulatory framework for digital assets, including fiat-referenced tokens (FRTs), a specific type of stablecoin. This framework, overseen by the Financial Services Regulatory Authority (FSRA), focuses on stability, security, and consumer protection, prohibiting algorithmic stablecoins and requiring issuers to maintain reserves in high-quality liquid assets.

In a significant move, Abu Dhabi entities IHC, ADQ, and First Abu Dhabi Bank (FAB) recently announced their plan to launch a dirham-backed stablecoin fully regulated by the UAE Central Bank. This stablecoin, operating on the ADI blockchain, aims to revolutionize payments and strengthen the UAE's digital infrastructure. Furthermore, Tether's USDT has been recognized as an accepted virtual asset within ADGM, highlighting the growing integration of stablecoins in the region's financial ecosystem. These developments underscore Abu Dhabi's commitment to fostering innovation in the digital asset space through clear and robust regulatory frameworks.