The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Markets (ADGM) has proposed a regulatory framework to govern regulated activities involving Fiat-Referenced Tokens (FRTs) through Consultation Paper No. 9 of 2025. The regulated framework aims to govern the use of FRT within ADGM. By publishing the draft framework, the regulatory authority welcomes public feedback and opinions on the proposal.
Fiat-Referenced Tokens or FRTs are a type of stablecoin whose value is backed by government-issued fiat currencies. FRTs is a regulatory term and are more precise than stablecoins, which is a broader term for crypto-backed, fiat-backed, and algorithmic tokens.
Issuing FRTs is already a regulated activity in ADGM, and the FRSA is now proposing updates to the existing requirements for companies involved in stablecoin activities. An official statement read that the deadline for submitting feedback and comments on the proposal is October 7, 2025.
Key elements of the proposed regulatory framework
FRTs use in ADGM – The FSRA is preparing rules on how FRTs can be used within ADGM.
Expanding regulated activities – Financial services and business activities focused on FRTs would be considered as regulated.
Proposing rules for holding FRTs – Companies that hold or control clients’ FRTs should comply with specific rules.
In December 2024, the FSRA introduced a regulatory framework for the issuance of FRTs, making the framework a unique “Regulated Activity within ADGM’s comprehensive financial services regulatory regime”.
