Abu Dhabi proposes regulatory framework for fiat currency reference tokens

Abu Dhabi's financial regulator plans to regulate the Fiat Reference Token (FRT), a stablecoin, in response to calls from stakeholders seeking to issue the token. The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) said that FRT issuers will be bound by operational restrictions and requirements. The FSRA recommends that the market value of reserve assets be at least equal to the par value of all FRTs in circulation at the end of each business day. FRTs should also be valued at daily market prices. The regulator also recommends that institutions issuing two or more FRTs should operate and maintain separate pools of reserve assets for each FRT and manage each pool separately.