TechFlow news, on August 21, according to Cointelegraph, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has recently proposed a draft regulatory framework for fiat-referenced tokens (FRTs), inviting public feedback before October 3, 2024. FRTs are stablecoins backed by liquid assets in the same currency, allowing for settlement with minimal price impact.
The framework imposes strict operational restrictions and requirements on FRT issuers. Key provisions include: the market value of reserve assets must be at least equal to the face value of outstanding FRTs; daily mark-to-market valuation of FRTs; and multiple FRT issuers must maintain separate reserve asset pools for each type of FRT. The FSRA stated this move responds to growing interest from potential applicants seeking to issue FRTs within ADGM.
