#AbuDhabiStablecoin Abu Dhabi is making significant strides in the digital finance sector with the introduction of a new regulatory framework for fiat-referenced tokens (FRTs), a category of stablecoins backed by high-quality, liquid assets denominated in the same currency as the token. The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) published Consultation Paper No. 7 of 2024, outlining proposals to enhance its regulatory framework to allow the issuance of FRTs from the ADGM.
In addition to regulatory developments, Abu Dhabi's sovereign wealth fund ADQ, conglomerate IHC, and First Abu Dhabi Bank (FAB) have announced plans to launch a new stablecoin backed by the UAE dirham. This initiative aligns with the UAE's broader strategy to position itself as a global hub for digital assets and blockchain technology.
These developments underscore Abu Dhabi's commitment to fostering a secure and innovative digital financial ecosystem.