#AbuDhabiStablecoin Welcome! The hashtag "#AbuDhabiStablecoin" refers to developments and discussions regarding stablecoins in the Emirate of Abu Dhabi, United Arab Emirates. There are two main levels to these discussions:
1. Launch of a Stablecoin Backed by the UAE Dirham:
* New Announcement: On April 28, 2025, three major institutions in Abu Dhabi - the Abu Dhabi Development Holding Company (ADQ), the International Holding Company (IHC), and First Abu Dhabi Bank (FAB) - announced their collaboration to launch a new stablecoin backed by the UAE dirham.
* Regulation by the Central Bank: This project will be subject to full regulation by the Central Bank of the United Arab Emirates.
* Working on the ADI Blockchain: The stablecoin is set to operate on the ADI blockchain.
* Targeted Uses: The stablecoin aims to facilitate everyday transactions for consumers and operations relying on artificial intelligence.
* A Step Towards a Global Digital Hub: This initiative is part of a broader strategy for the UAE to become a global hub for digital assets.
2. The Regulatory Framework for Stablecoins in the Abu Dhabi Global Market (ADGM):
* Financial Services Regulatory Authority (FSRA): The Financial Services Regulatory Authority in the Abu Dhabi Global Market is working to develop and implement a regulatory framework for stablecoins, referred to as "Fiat-Referenced Tokens (FRTs)."
* Focus on Stability and Trust: The regulatory framework emphasizes achieving stability, transparency, and investor protection while fostering innovation in digital finance.
* Reserve Requirements: The framework specifies requirements for managing reserve assets that support stablecoins, focusing on high-quality liquid assets.
* Ban on Algorithmic Stablecoins: The regulatory framework currently does not permit algorithmic stablecoins due to the difficulty of maintaining strong stability mechanisms without underlying assets of intrinsic value.
* Ongoing Consultations: The Financial Services Regulatory Authority regularly conducts consultations with the industry and stakeholders to develop and update this regulatory framework.
In summary, #AbuDhabiStablecoin refers to both the efforts to launch a state-backed stablecoin and the broader regulatory framework being developed in the Abu Dhabi Global Market to regulate the issuance and management of stablecoins. These developments position Abu Dhabi and the UAE at the forefront of innovation in digital assets.
