#AbuDhabiStablecoin

The Abu Dhabi Global Market (ADGM) has established a comprehensive regulatory framework for digital assets, including stablecoins. Here’s a summary of the key aspects:

Fiat-Referenced Tokens (FRTs) / Stablecoins:

* The Financial Services Regulatory Authority (FSRA) of the ADGM introduced a specific regulatory framework for fiat-referenced tokens (FRTs), commonly known as stablecoins. This came into effect on December 5, 2024.

* This framework creates a distinct regulated activity for the issuance of FRTs, aiming to balance innovation with financial stability and investor protection.

* Definition: An FRT is defined as a digital asset that:

* Serves as a medium of exchange.

* Maintains a stable value by referencing a fixed amount of a single fiat currency.