Abu Dhabi proposes regulatory framework for fiat-referenced tokens

Abu Dhabi financial regulatory authority plans to regulate the fiat reference token (FRT), which is a stablecoin, in response to calls from stakeholders to issue the token. The Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) stated that FRT issuers will be subject to operational restrictions and requirements. FSRA recommends that the market value of reserve assets be at least equal to the face value of all circulating FRT at the end of each working day. FRT should also be valued daily at market prices. The regulatory authority also recommends that institutions issuing two or more FRTs should operate and maintain independent reserve asset pools for each FRT and manage each reserve asset pool separately.