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The regulatory authority for ADGM in the UAE issues its stablecoin framework

Author: Content Editor
The Financial Services Regulatory Authority (FSRA) in the UAE has issued regulations for fiat-referenced tokens (FRTs), also known as stablecoins. The framework introduces standards for FRT issuers, including reserve assets, transparent disclosure, and redemption rights, to ensure financial stability and protect investors. The regulations make FRT issuance a regulated activity within the Abu Dhabi Global Market (ADGM). The CEO of FSRA stated that the framework balances innovation with regulatory oversight and positions ADGM as a jurisdiction for responsible FRT issuance. The framework defines FRT as a digital asset with a stable store of value, referencing a fixed amount of a single fiat currency. FRT can be utilized for remittance payments and various payment transactions. The UAE Central Bank previously issued regulations on stablecoin payment tokens, allowing foreign stablecoins for purchasing virtual assets and AED stablecoins for purchasing products and services within the UAE. Tether and AED Stablecoin LLC have announced the launch of AED stablecoins.

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